[Congressional Record (Bound Edition), Volume 153 (2007), Part 13]
[House]
[Pages 18486-18543]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   COLLEGE COST REDUCTION ACT OF 2007

  Mr. GEORGE MILLER of California. Mr. Speaker, pursuant to House 
Resolution 531, I call up the bill (H.R. 2669) to provide for 
reconciliation pursuant to section 601 of the concurrent resolution on 
the budget for fiscal year 2008, and ask for its immediate 
consideration.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

[[Page 18487]]



                               H.R. 2669

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be referred to as the 
     ``College Cost Reduction Act of 2007''.
       (b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.

                   TITLE I--INVESTING IN STUDENT AID

         Part A--Increasing the Purchasing Power of Pell Grants

Sec. 101. Mandatory Pell Grant Increases.
Sec. 102. Support for working students.
Sec. 103. Simplified needs test and automatic zero improvements.
Sec. 104. Definitions.

              Part B--Making Student Loans More Affordable

Sec. 111. Interest rate reductions.
Sec. 112. Increases in loan limits.
Sec. 113. Reduction of lender special allowance payments.
Sec. 114. Elimination of exceptional performer status for lenders.
Sec. 115. Reduction of lender insurance percentage.
Sec. 116. Guaranty agency collection retention.
Sec. 117. Unit costs for account maintenance fees.
Sec. 118. Increased loan fees from lenders.
Sec. 119. Student loan information.

                 Part C--Rewarding Service in Repayment

Sec. 141. Loan forgiveness for service in areas of national need.
``Sec. 428K. Loan forgiveness for service in areas of national need.
Sec. 142. Income contingent repayment for public sector employees.
Sec. 143. Income-based repayment.
``Sec. 493C. Income-based repayment.
Sec. 144. Definition of economic hardship.
Sec. 145. Deferrals.
Sec. 146. Maximum repayment period.

                 TITLE II--REDUCING THE COST OF COLLEGE

Sec. 201. State commitment to affordable college education.
``Sec. 132. State commitment to affordable college education.
Sec. 202. Consumer information and public accountability in higher 
              education.
``Sec. 131. Consumer information and public accountability in higher 
              education.
Sec. 203. Incentives and rewards for low tuition.
``Sec. 401B. Incentives and rewards for low tuition.
Sec. 204. Cooperative education rewards for institutions that restrain 
              tuition increases.

   ``TITLE VIII--COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT 
                       RESTRAIN TUITION INCREASES

``Sec. 801. Eligible institutions.
``Sec. 802. Authorization of appropriations; reservations.
``Sec. 803. Grants for cooperative education.
``Sec. 804. Demonstration and innovation projects; training and 
              resource centers; and research.

   TITLE III--ENSURING A HIGHLY QUALIFIED TEACHER IN EVERY CLASSROOM

                          Part A--TEACH Grants

Sec. 301. TEACH Grants.


                       ``Subpart 9--TEACH Grants

``Sec. 420L. Program established.
``Sec. 420M. Eligibility; applications; selection.
``Sec. 420N. Definitions.
``Sec. 420O. Program period and funding.

                     Part B--Centers of Excellence

Sec. 311. Centers of excellence.

                    ``Part C--Centers of Excellence

``Sec. 231. Definitions.
``Sec. 232. Centers of excellence.
``Sec. 233. Appropriations.

            TITLE IV--COLLEGE ACCESS CHALLENGE GRANT PROGRAM

Sec. 401. College Access Challenge grants.

     SEC. 2. REFERENCES; EFFECTIVE DATE.

       (a) 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.).
       (b) Effective Date.--Except as otherwise expressly provided 
     therein, the amendments made by this Act shall be effective 
     on October 1, 2007.

                   TITLE I--INVESTING IN STUDENT AID

         PART A--INCREASING THE PURCHASING POWER OF PELL GRANTS

     SEC. 101. MANDATORY PELL GRANT INCREASES.

       (a) Extension of Authority.--Section 401(a) (20 U.S.C. 
     1070a(a)) is amended by striking ``fiscal year 2004'' and 
     inserting ``fiscal year 2013''.
       (b) Funding for Increases.--Section 401(b) (20 U.S.C. 
     1070a(b)) is amended by adding at the end the following new 
     paragraph:
       ``(9) Additional funds.--
       ``(A) In general.--There are authorized to be appropriated, 
     and there are appropriated, to carry out subparagraph (B) of 
     this paragraph (in addition to any other amounts appropriated 
     to carry out this section and out of any money in the 
     Treasury not otherwise appropriated) the following amounts:
       ``(i) $420,000,000 for fiscal year 2008;
       ``(ii) $870,000,000 for fiscal year 2009;
       ``(iii) $1,330,000,000 for fiscal year 2010;
       ``(iv) $1,820,000,000 for fiscal year 2011;
       ``(v) $2,340,000,000 for fiscal year 2012;
       ``(vi) $2,390,000,000 for fiscal year 2013;
       ``(vii) $2,430,000,000 for fiscal year 2014;
       ``(viii) $2,470,000,000 for fiscal year 2015;
       ``(ix) $2,500,000,000 for fiscal year 2016; and
       ``(x) $2,520,000,000 for fiscal year 2017.
       ``(B) Increase in federal pell grants.--The amounts made 
     available pursuant to subparagraph (A) of this paragraph 
     shall be used to increase the amount of the maximum Pell 
     Grant for which a student shall be eligible during an award 
     year, as specified in the last enacted appropriation Act 
     applicable to that award year, by--
       ``(i) $100 for award year 2008-2009;
       ``(ii) $200 for award year 2009-2010;
       ``(iii) $300 for award year 2010-2011;
       ``(iv) $400 for award year 2011-2012; and
       ``(v) $500 for award year 2012-2013 and each subsequent 
     award year.
       ``(C) Use of fiscal year funds for award years.--The 
     amounts made available by subparagraph (A) for any fiscal 
     year shall be available and remain available for use under 
     subparagraph (B) for the award year that begins in such 
     fiscal year.''.
       (c)  Authorized Maximums.--Section 401(b)(2)(A) (20 U.S.C. 
     1070a(b)(2)(A)) is amended to read as follows:
       ``(2)(A) The amount of the Federal Pell Grant for a student 
     eligible under this part shall be--
       ``(i) $7,600 for academic year 2008-2009;
       ``(ii) $8,600 for academic year 2009-2010;
       ``(iii) $9,600 for academic year 2010-2011;
       ``(iv) $10,600 for academic year 2011-2012;
       ``(v) $11,600 for academic year 2012-2013,
     less an amount equal to the amount determined to be the 
     expected family contribution with respect to that student for 
     that year.''.
       (d) Tuition Sensitivity.--
       (1) Amendment.--Section 401(b) (20 U.S.C. 1070a(b)) is 
     further amended--
       (A) by striking paragraph (3); and
       (B) by redesignating paragraphs (4) through (9) as 
     paragraphs (3) through (8), respectively.
       (2) Effective date.--The amendments made by paragraph (1) 
     of this subsection are effective on the date of enactment of 
     this Act.
       (e) Multiple Grants.--Paragraph (5) of section 401(b) (as 
     redesignated by subsection (d)(2)) is amended to read as 
     follows:
       ``(5) Year-round pell grants.--The Secretary is authorized, 
     for students enrolled full time in a baccalaureate or 
     associate's degree program of study at an eligible 
     institution, to award such students not more than two Pell 
     grants during an award year to permit such students to 
     accelerate progress toward their degree objectives by 
     enrolling in academic programs for 12 months rather than 9 
     months.''.
       (f) Academic Competitiveness Grants.--Section 401A (as 
     amended by section 8003 of Public Law 109-171) is amended--
       (1) in subsection (c)(3)(A)(ii), by inserting ``, except as 
     part of a secondary school program of study'' before the 
     semicolon;
       (2) by redesignating subsection (g) as subsection (h); and
       (3) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Determination of Academic Year.--Notwithstanding 
     section 481(a)(2), for the purpose of determining eligibility 
     for a grant under this section, a student shall be considered 
     to be enrolled or accepted for enrollment in the first, 
     second, third, or fourth academic year of a program of 
     undergraduate education based on the student's class 
     standing, as determined by the institution of higher 
     education at which the student is enrolled or accepted for 
     enrollment.''.

     SEC. 102. SUPPORT FOR WORKING STUDENTS.

       (a) Dependent Students.--Subparagraph (D) of section 
     475(g)(2) (20 U.S.C. 1087oo)(g)(2)(D)) is amended to read as 
     follows:
       ``(D) an income protection allowance of the following 
     amount (or a successor amount prescribed by the Secretary 
     under section 478)--
       ``(i) for the 2009-2010 academic year, $3,750;
       ``(ii) for the 2010-2011 academic year, $4,500;
       ``(iii) for the 2011-2012 academic year, $5,250; and
       ``(iv) for the 2012-2013 academic year, $6,000;''.
       (b) Independent Students Without Dependents Other Than a 
     Spouse.--Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 
     1087pp(b)(1)(A)(iv)) is amended to read as follows:
       ``(iv) an income protection allowance of the following 
     amount (or a successor amount prescribed by the Secretary 
     under section 478)--

       ``(I) for single or separated students, or married students 
     where both are enrolled pursuant to subsection (a)(2)--

       ``(aa) for the 2009-2010 academic year, $6,690;
       ``(bb) for the 2010-2011 academic year, $7,160;

[[Page 18488]]

       ``(cc) for the 2011-2012 academic year, $7,630; and
       ``(dd) for the 2012-2013 academic year, $8,090; and

       ``(II) for married students where 1 is enrolled pursuant to 
     subsection (a)(2)--

       ``(aa) for the 2009-2010 academic year, $10,720;
       ``(bb) for the 2010-2011 academic year, $11,470;
       ``(cc) for the 2011-2012 academic year, $12,220; and
       ``(dd) for the 2012-2013 academic year, $12,960;''.
       (c) Updated Tables and Amounts.--Section 478(b) (20 U.S.C. 
     1087rr(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``Revised tables.--For each'' and inserting 
     ``Revised tables.--
       ``(A) In general.--For each'';
       (B) in subparagraph (A) (as designated by subparagraph 
     (A)), in the third sentence--
       (i) by striking ``preceding sentence'' and inserting 
     ``subparagraph (A)''; and
       (ii) by striking ``For the 2007-2008'' and inserting the 
     following:
       ``(B) Special rule for 2007-2008 academic year.--For the 
     2007-2008''; and
       (C) by adding at the end the following:
       ``(C) Special rule for 2009-2010 through 2012-2013 academic 
     years.--For the 2009-2010 academic year, and for each of the 
     3 succeeding academic years, the Secretary shall revise the 
     tables in accordance with this paragraph, except that, for 
     the table in section 477(b)(4), the Secretary shall revise 
     such table by increasing the amounts contained in such table 
     for the preceding academic year by 10 percent.''; and
       (2) in paragraph (2), by striking ``shall be developed'' 
     and all that follows through the period at the end and 
     inserting ``shall be developed--
       ``(A) for academic year 2008-2009, by increasing each of 
     the dollar amounts contained in such section as such section 
     was in effect on the day before the date of enactment of the 
     College Cost Reduction Act of 2007 by a percentage equal to 
     the estimated percentage increase in the Consumer Price Index 
     (as determined by the Secretary) between December 2006 and 
     the December next preceding the beginning of such academic 
     year, and rounding the result to the nearest $10; and
       ``(B) for each academic year after 2012-2013, by increasing 
     each of the dollar amounts contained in such section for 
     academic year 2012-2013 by a percentage equal to the 
     estimated percentage increase in the Consumer Price Index (as 
     determined by the Secretary) between December 2006 and the 
     December next preceding the beginning of such academic year, 
     and rounding the result to the nearest $10;''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2008, and the 
     amendment made by subsection (c) shall take effect on July 1, 
     2008.

     SEC. 103. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO 
                   IMPROVEMENTS.

       (a) Simplified Needs Test.--Section 479 (20 U.S.C. 1087ss) 
     is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A)(i)--
       (i) in subclause (II), by striking ``or'' after the 
     semicolon;
       (ii) by redesignating subclause (III) as subclause (IV);
       (iii) by inserting after subclause (II) the following:

       ``(III) 1 of whom is a dislocated worker; or''; and

       (iv) in subclause (IV) (as redesignated by clause (ii)), by 
     striking ``12-month'' and inserting ``24-month''; and
       (B) in subparagraph (B)(i)--
       (i) in subclause (II), by striking ``or'' after the 
     semicolon;
       (ii) by redesignating subclause (III) as subclause (IV);
       (iii) by inserting after subclause (II) the following:

       ``(III) 1 of whom is a dislocated worker; or''; and

       (iv) in subclause (IV) (as redesignated by clause (ii)), by 
     striking ``12-month'' and inserting ``24-month'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) in clause (ii), by striking ``or'' after the semicolon;
       (II) by redesignating clause (iii) as clause (iv);
       (III) by inserting after clause (ii) the following:

       ``(iii) 1 of whom is a dislocated worker; or''; and

       (IV) in clause (iv) (as redesignated by subclause (II)), by 
     striking ``12-month'' and inserting ``24-month''; and

       (ii) in subparagraph (B), by striking ``$20,000'' and 
     inserting ``$30,000''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) in clause (ii), by striking ``or'' after the semicolon;
       (II) by redesignating clause (iii) as clause (iv);
       (III) by inserting after clause (ii) the following:

       ``(iii) is a dislocated worker; or''; and

       (IV) in clause (iv) (as redesignated by subclause (II)), by 
     striking ``12-month'' and inserting ``24-month''; and

       (ii) in subparagraph (B), by striking ``$20,000'' and 
     inserting ``$30,000''; and
       (C) in the flush matter following paragraph (2)(B), by 
     adding at the end the following: ``The Secretary shall 
     annually adjust the income level necessary to qualify an 
     applicant for the zero expected family contribution. The 
     income level shall be adjusted according to increases in the 
     Consumer Price Index, as defined in section 478(f).''; and
       (3) in subsection (d)--
       (A) by redesignating paragraphs (1) through (6) as 
     subparagraphs (A) through (F), respectively;
       (B) by striking ``(d) Definition'' and all that follows 
     through ``the term'' and inserting the following:
       ``(d) Definitions.--In this section:
       ``(1) Dislocated worker.--The term `dislocated worker' has 
     the meaning given the term in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801).
       ``(2) Means-tested federal benefit program.--The term''.
       (b) Discretion of Student Financial Aid Administrators.--
     Section 479A(a) (20 U.S.C. 1087tt(a)) is amended in the third 
     sentence by inserting ``a family member who is a dislocated 
     worker (as defined in section 101 of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2801)),'' after ``recent unemployment 
     of a family member,''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective on July 1, 2009.

     SEC. 104. DEFINITIONS.

       (a) Total Income.--Section 480(a) (20 U.S.C. 1087vv(a)) is 
     amended--
       (1) in paragraph (1), by inserting before the period at the 
     end the following: ``, except that the Secretary may, by 
     regulation, provide for the use of the previous tax year when 
     and to the extent necessary to carry out the sense of 
     Congress in section 133 of the College Cost Reduction Act of 
     2007''; and
       (2) in paragraph (2)--
       (A) by striking ``and no portion'' and inserting ``no 
     portion''; and
       (B) by inserting ``and no distribution from any qualified 
     education benefit described in subsection (f)(3) that is not 
     subject to Federal income tax,'' after ``1986,''.
       (b) Untaxed Income and Benefits.--Section 480(b) (20 U.S.C. 
     1087vv(b)) is amended to read as follows:
       ``(b) Untaxed Income and Benefits.--
       ``(1) The term `untaxed income and benefits' means--
       ``(A) child support received;
       ``(B) workman's compensation;
       ``(C) veteran's benefits such as death pension, dependency, 
     and indemnity compensation, but excluding veterans' education 
     benefits as defined in subsection (c);
       ``(D) interest on tax-free bonds;
       ``(E) housing, food, and other allowances (excluding rent 
     subsidies for low-income housing) for military, clergy, and 
     others (including cash payments and cash value of benefits);
       ``(F) cash support or any money paid on the student`s 
     behalf, except, for dependent students, funds provided by the 
     student's parents;
       ``(G) untaxed portion of pensions;
       ``(H) payments to individual retirement accounts and Keogh 
     accounts excluded from income for Federal income tax 
     purposes; and
       ``(I) any other untaxed income and benefits, such as Black 
     Lung Benefits, Refugee Assistance, railroad retirement 
     benefits, or Job Training Partnership Act noneducational 
     benefits or benefits received through participation in 
     employment and training activities under title I of the 
     Workforce Investment Act of 1998.
       ``(2) The term `untaxed income and benefits' shall not 
     include the amount of additional child tax credit claimed for 
     Federal income tax purposes.''.
       (c) Assets.--Section 480(f) (20 U.S.C. 1087vv(f)) is 
     amended--
       (1) in paragraph (3), by striking ``shall not be considered 
     an asset of a student for purposes of section 475'' and 
     inserting ``shall be considered an asset of the parent for 
     purposes of section 475'';
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (3) by inserting after paragraph (3) the following:
       ``(4) A qualified education benefit shall be considered an 
     asset of the student for purposes of section 476 and 477.''.
       (d) Other Financial Assistance.--Section 480(j)(2) (20 
     U.S.C. 1087vv(j)(2)) is amended by inserting ``, or a 
     distribution that is not includable in gross income under 
     section 529 of such Code, under another prepaid tuition plan 
     offered by a State, or under a Coverdell education savings 
     account under section 530 of such Code,'' after ``1986''.
       (e) Effective Date.--The amendments made by this section 
     shall be effective on July 1, 2009.

              PART B--MAKING STUDENT LOANS MORE AFFORDABLE

     SEC. 111. INTEREST RATE REDUCTIONS.

       (a) FFEL Interest Rates.--
       (1) Section 427A(l) (20 U.S.C. 1077a(l)) is amended by 
     adding at the end the following new paragraph:

[[Page 18489]]

       ``(4) Reduced rates for undergraduate subsidized loans.--
     Notwithstanding subsection (h) and paragraph (1) of this 
     subsection, with respect to any loan to an undergraduate 
     student made, insured, or guaranteed under this part (other 
     than a loan made pursuant to section 428B, 428C, or 428H) for 
     which the first disbursement is made on or after July 1, 
     2006, and before July 1, 2013, the applicable rate of 
     interest shall be as follows:
       ``(A) For a loan for which the first disbursement is made 
     on or after July 1, 2006, and before July 1, 2008, 6.80 
     percent on the unpaid principal balance of the loan.
       ``(B) For a loan for which the first disbursement is made 
     on or after July 1, 2008, and before July 1, 2009, 6.12 
     percent on the unpaid principal balance of the loan.
       ``(C) For a loan for which the first disbursement is made 
     on or after July 1, 2009, and before July 1, 2010, 5.44 
     percent on the unpaid principal balance of the loan.
       ``(D) For a loan for which the first disbursement is made 
     on or after July 1, 2010, and before July 1, 2011, 4.76 
     percent on the unpaid principal balance of the loan.
       ``(E) For a loan for which the first disbursement is made 
     on or after July 1, 2011, and before July 1, 2012, 4.08 
     percent on the unpaid principal balance of the loan.
       ``(F) For a loan for which the first disbursement is made 
     on or after July 1, 2012 and before July 1, 2013, 3.40 
     percent on the unpaid principal balance of the loan.''.
       (2) Special allowance cross reference.--Section 
     438(b)(2)(I)(ii)(II) (20 U.S.C. 1086(b)(2)(I)(ii)(II)) is 
     amended by striking ``section 427A(l)(1)'' and inserting 
     ``section 427A(l)(1) or (l)(4)''.
       (b) Direct Loan Interest Rates.--Section 455(b)(7) (20 
     U.S.C. 1087e(b)(7)) is amended by adding at the end the 
     following new subparagraph:
       ``(D) Reduced rates for undergraduate fdsl.--
     Notwithstanding the preceding paragraphs of this subsection, 
     for Federal Direct Stafford Loans made to undergraduate 
     students for which the first disbursement is made on or after 
     July 1, 2006, and before July 1, 2013, the applicable rate of 
     interest shall be as follows:
       ``(i) For a loan for which the first disbursement is made 
     on or after July 1, 2006, and before July 1, 2008, 6.80 
     percent on the unpaid principal balance of the loan.
       ``(ii) For a loan for which the first disbursement is made 
     on or after July 1, 2008, and before July 1, 2009, 6.12 
     percent on the unpaid principal balance of the loan.
       ``(iii) For a loan for which the first disbursement is made 
     on or after July 1, 2009, and before July 1, 2010, 5.44 
     percent on the unpaid principal balance of the loan.
       ``(iv) For a loan for which the first disbursement is made 
     on or after July 1, 2010, and before July 1, 2011, 4.76 
     percent on the unpaid principal balance of the loan.
       ``(v) For a loan for which the first disbursement is made 
     on or after July 1, 2011, and before July 1, 2012, 4.08 
     percent on the unpaid principal balance of the loan.
       ``(vi) For a loan for which the first disbursement is made 
     on or after July 1, 2012, and before July 1, 2013, 3.40 
     percent on the unpaid principal balance of the loan.''.

     SEC. 112. INCREASES IN LOAN LIMITS.

       (a) Increase in Third and Subsequent Year Limits.--
       (1) Federal insurance limits.--Section 425(a)(1)(A)(iii) 
     (20 U.S.C. 1075(a)(1)(A)(iii)) is amended by striking 
     ``$5,500'' and inserting ``$7,500''.
       (2) Guaranty limits.--Section 428(b)(1)(A)(iii)(I) (20 
     U.S.C. 1078(b)(1)(A)(iii)(I)) is amended by striking 
     ``$5,500'' and inserting ``$7,500''.
       (b) Increase in Aggregate Limits.--
       (1) Federal insurance limits.--Section 425(a)(2)(A) (20 
     U.S.C. 1075(a)(2)(A)(i)) is amended--
       (A) in clause (i), by striking ``$23,000'' and inserting 
     ``$30,500''; and
       (B) in clause (ii), by striking ``$65,500'' and inserting 
     ``$73,000''.
       (2) Guaranty limits.--Section 428(b)(1)(B) (20 U.S.C. 
     1078(b)(1)(A)(iii)(I)) is amended--
       (A) in clause (i), by striking ``$23,000'' and inserting 
     ``$30,500''; and
       (B) in clause (ii), by striking ``$65,500'' and inserting 
     ``$73,000''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective July 1, 2008.

     SEC. 113. REDUCTION OF LENDER SPECIAL ALLOWANCE PAYMENTS.

       Section 438(b)(2)(I) (20 U.S.C. 1087-1(b)(2)(I)) is 
     amended--
       (1) in clause (i), by striking ``clauses (ii), (iii), and 
     (iv)'' and inserting ``the following clauses''; and
       (2) by adding at the end the following new clause:
       ``(vi) Reduction for loans on or after october 1, 2007.--
     With respect to a loan on which the applicable interest rate 
     is determined under section 427A(l), the percentage to be 
     added under clause (i)(III) in computing the special 
     allowance payment pursuant to this subparagraph shall be the 
     following:

       ``(I) In general and plus loans.--1.79 percent in the case 
     of a loan described in clause (i) or (iii) for which the 
     first disbursement of principal is made on or after October 
     1, 2007.
       ``(II) In school and grace period.--1.19 percent in the 
     case of a loan described in clause (ii)(II) for which the 
     first disbursement of principal is made on or after October 
     1, 2007.
       ``(III) Consolidation loans.--2.09 percent in the case of a 
     loan described in clause (iv) for which the first 
     disbursement of principal is made on or after October 1, 
     2007''.

     SEC. 114. ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR 
                   LENDERS.

       (a) Elimination of Status.--Part B of title IV (20 U.S.C. 
     1071 et seq.) is amended by striking section 428I (20 U.S.C. 
     1078-9).
       (b) Conforming Amendments.--Part B of title IV is further 
     amended--
       (1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))--
       (A) by striking subparagraph (D); and
       (B) by redesignating subparagraphs (E) through (H) as 
     subparagraphs (D) through (G), respectively; and
       (2) in section 438(b)(5) (20 U.S.C. 1087-1(b)(5)), by 
     striking the matter following subparagraph (B).
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2007.

     SEC. 115. REDUCTION OF LENDER INSURANCE PERCENTAGE.

       (a) Amendment.--Subparagraph (G) of section 428(b)(1) (20 
     U.S.C. 1078(b)(1)(G)) is amended to read as follows:
       ``(G) insures 95 percent of the unpaid principal of loans 
     insured under the program, except that--
       ``(i) such program shall insure 100 percent of the unpaid 
     principal of loans made with funds advanced pursuant to 
     section 428(j) or 439(q); and
       ``(ii) notwithstanding the preceding provisions of this 
     subparagraph, such program shall insure 100 percent of the 
     unpaid principal amount of exempt claims as defined in 
     subsection (c)(1)(G);''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect with respect to loans made on or after 
     October 1, 2007.

     SEC. 116. GUARANTY AGENCY COLLECTION RETENTION.

       Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 
     1078(c)(6)(A)(ii)) is amended to read as follows:
       ``(ii) an amount equal to 23 percent of such payments for 
     use in accordance with section 422B, except that beginning 
     October 1, 2007, this subparagraph shall be applied by 
     substituting `16 percent' for `23 percent'.''.

     SEC. 117. UNIT COSTS FOR ACCOUNT MAINTENANCE FEES.

       Section 458(b) (20 U.S.C. 1087h(b)) is amended--
       (1) by striking ``Account'' and inserting the following:
       ``(1) For fiscal years 2006 and 2007.--For fiscal years 
     2006 and 2007, account''; and
       (2) by adding at the end the following new paragraph:
       ``(2) For fiscal year 2008 and succeeding fiscal years.--
       ``(A) Unit cost basis.--For fiscal year 2008 and each 
     succeeding fiscal year, the Secretary shall calculate the 
     account maintenance fees payable to guaranty agencies under 
     subsection (a)(3), on a per-loan cost basis in accordance 
     with subparagraph (B) of this paragraph.
       ``(B) Determinations.--To determine the amount that shall 
     be paid under subsection (a)(3) per outstanding loan 
     guaranteed by a guaranty agency for fiscal year 2008 and 
     succeeding fiscal years, the Secretary shall--
       ``(i) establish the per-loan cost basis amount by--

       ``(I) dividing the total amount of account maintenance fees 
     paid under subsection (a)(3) in fiscal year 2006, by
       ``(II) the number of loans under part B that were 
     outstanding in that fiscal year; and

       ``(ii) determine on October 1 of fiscal year 2008 and each 
     subsequent fiscal year, and pay to each guaranty agency, an 
     amount equal to the product of the number of loans under part 
     B that are outstanding on October 1 of that fiscal year and 
     insured by that guaranty agency multiplied by--

       ``(I) the amount determined under clause (i); increased by
       ``(II) a percentage equal to the percentage increase in the 
     GDP price index (as determined by the Bureau of Labor 
     Statistics of the Department of Labor) between the calendar 
     quarter ending on June 30, 2006, and the calendar quarter 
     ending on the June 30 preceding such October 1 of such fiscal 
     year.''.

     SEC. 118. INCREASED LOAN FEES FROM LENDERS.

       Paragraph (2) of section 438(d) (20 U.S.C. 1087-1(d)(2)) is 
     amended to read as follows:
       ``(2) Amount of loan fees.--
       ``(A) Amount.--The amount of the loan fee which shall be 
     deducted under paragraph (1), but which may not be collected 
     from the borrower, shall be equal to--
       ``(i) except as provided in clauses (ii) and (iii), 0.50 
     percent of the principal amount of the loan with respect to 
     any loan under this part for which the first disbursement was 
     made on or after October 1, 1993;
       ``(ii) 1.0 percent of the principal amount of the loan with 
     respect to any loan under this part for which the first 
     disbursement was made on or after October 1, 2007, that is 
     held by any holder other than a holder designated by the 
     Secretary as a small lender under subparagraph (B); and
       ``(iii) 0.0 percent of the principal amount of the loan 
     with respect to any loan under this part for which the first 
     disbursement was

[[Page 18490]]

     made on or after October 1, 2007, that is held by any holder 
     that, together with its affiliated holders, is designated by 
     the Secretary as a small lender under subparagraph (B).
       ``(B) Designation of small lenders.--In determining which 
     holders of eligible loans qualify as small lenders for 
     purposes of subparagraph (A)(iii), the Secretary shall, using 
     the most recently available data with respect to the total 
     principal amount of eligible loans held by holders--
       ``(i) rank all holders (combined with their affiliated 
     holders) of eligible loans in descending order by total 
     principal amount of eligible loans held;
       ``(ii) calculate the total principal amount of eligible 
     loans held by all holders; and
       ``(iii) identify the subset of consecutively ranked holders 
     under clause (i), starting with the lowest ranked holder, 
     that together hold a total principal amount of such loans 
     equal to 15 percent of the total amount calculated under 
     clause (ii), but excluding the holder, if any, whose holdings 
     when added cause the total holdings of the subset to equal 
     but not exceed such 15 percent of such total amount 
     calculated; and
       ``(iv) designate as small lenders any holder identified as 
     a member of the subset under clause (iii).''.

     SEC. 119. STUDENT LOAN INFORMATION.

       Section 428(k) (20 U.S.C. 1078(k)) is amended by adding at 
     the end the following new paragraph:
       ``(4) Student loan information.--
       ``(A) Notwithstanding any other provision of law or 
     regulation, a lender, secondary market, holder, or guaranty 
     agency shall provide, free of charge and in a timely and 
     effective manner, any student loan information maintained by 
     that entity that is requested by an institution of higher 
     education and any third-party servicer (as defined in section 
     481(c)) working on behalf of that institution to prevent 
     student loan defaults.
       ``(B) An institution and any third-party servicer obtaining 
     access to information under subparagraph (A) shall safeguard 
     that information in order to prevent potential abuses of that 
     information, including identity theft.
       ``(C) Any third party servicer that obtains information 
     under this subparagraph shall only use the information in a 
     manner directly related to the default prevention work the 
     servicer is performing on behalf of the institution of higher 
     education.
       ``(D) Any third party servicer that obtains information 
     under this subparagraph shall be subject to any regulations 
     established by the Secretary pursuant to section 432 
     concerning the misuse of such information, including any 
     penalties for such misuse.''.

                 PART C--REWARDING SERVICE IN REPAYMENT

     SEC. 141. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL 
                   NEED.

       Section 428K (20 U.S.C. 1078-11) is amended to read as 
     follows:

     ``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF 
                   NATIONAL NEED.

       ``(a) Program Authorized.--
       ``(1) Loan forgiveness authorized.--The Secretary shall 
     forgive, in accordance with this section, the student loan 
     obligation of a borrower in the amount specified in 
     subsection (c), for any new borrower after the date of 
     enactment of the College Cost Reduction Act of 2007, who--
       ``(A) has been employed full-time for at least 5 
     consecutive complete school, academic, or calendar years, as 
     appropriate, in an area of national need described in 
     subsection (b); and
       ``(B) is not in default on a loan for which the borrower 
     seeks forgiveness.
       ``(2) Method of loan forgiveness.--To provide loan 
     forgiveness under paragraph (1), the Secretary is authorized 
     to carry out a program--
       ``(A) through the holder of the loan, to assume the 
     obligation to repay a qualified loan amount for a loan made, 
     insured, or guaranteed under this part; and
       ``(B) to cancel a qualified loan amount for a loan made 
     under part D of this title.
       ``(3) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out the 
     provisions of this section.
       ``(b) Areas of National Need.--For purposes of this 
     section, an individual shall be treated as employed in an 
     area of national need if the individual is employed full time 
     as any of the following:
       ``(1) Early childhood educators.--An individual who is 
     employed as an early childhood educator in an eligible 
     preschool program or eligible early childhood education 
     program in a low-income community, and who is involved 
     directly in the care, development, and education of infants, 
     toddlers, or young children through age 5.
       ``(2) Nurses.--An individual who is employed--
       ``(A) as a nurse in a clinical setting; or
       ``(B) as a member of the nursing faculty at an accredited 
     school of nursing (as those terms are defined in section 801 
     of the Public Health Service Act (42 U.S.C. 296)).
       ``(3) Foreign language specialists.--An individual who has 
     obtained a baccalaureate degree in a critical foreign 
     language and is employed--
       ``(A) in an elementary or secondary school as a teacher of 
     a critical foreign language; or
       ``(B) in an agency of the United States Government in a 
     position that regularly requires the use of such critical 
     foreign language.
       ``(4) Librarians.--An individual who is employed as a 
     librarian in--
       ``(A) a public library that serves a geographic area within 
     which the public schools have a combined average of 30 
     percent or more of their total student enrollments composed 
     of children counted under section 1113(a)(5) of the 
     Elementary and Secondary Education Act of 1965; or
       ``(B) an elementary or secondary school which is in the 
     school district of a local educational agency which is 
     eligible in such year for assistance pursuant to title I of 
     the Elementary and Secondary Education Act of 1965, and which 
     for the purpose of this paragraph and for that year has been 
     determined by the Secretary (pursuant to regulations and 
     after consultation with the State educational agency of the 
     State in which the school is located) to be a school in which 
     the enrollment of children counted under section 1113(a)(5) 
     of the Elementary and Secondary Education Act of 1965 exceeds 
     30 percent of the total enrollment of that school.
       ``(5) Highly qualified teachers: bilingual education and 
     low-income communities.--An individual who--
       ``(A) is highly qualified as such term is defined in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965; and
       ``(B)(i) is employed as a full-time teacher of bilingual 
     education; or
       ``(ii) is employed as a teacher for service in a public or 
     nonprofit private elementary or secondary school which is in 
     the school district of a local educational agency which is 
     eligible in such year for assistance pursuant to title I of 
     the Elementary and Secondary Education Act of 1965, and which 
     for the purpose of this paragraph and for that year has been 
     determined by the Secretary (pursuant to regulations and 
     after consultation with the State educational agency of the 
     State in which the school is located) to be a school in which 
     the enrollment of children counted under section 1113(a)(5) 
     of the Elementary and Secondary Education Act of 1965 exceeds 
     40 percent of the total enrollment of that school.
       ``(6) Child welfare workers.--An individual who--
       ``(A) has obtained a degree in social work or a related 
     field with a focus on serving children and families; and
       ``(B) is employed in public or private child welfare 
     services.
       ``(7) Speech-language pathologists.--An individual who is a 
     speech-language pathologist, who is employed in an eligible 
     preschool program or an elementary or secondary school, and 
     who has, at a minimum, a graduate degree in speech-language 
     pathology, or communication sciences and disorders.
       ``(8) National service.--An individual who is engaged as a 
     participant in project under the National and Community 
     Service Act of 1990 (as such terms are defined in section 101 
     of such Act (42 U.S.C. 12511)).
       ``(9) Public sector employees.--An individual who is 
     employed in government, public safety (including as a first 
     responder, firefighter, police officer, or other law 
     enforcement or public safety officer), emergency management 
     (including as an emergency medical technician), public 
     health, or public interest legal services (including 
     prosecution or public defense).
       ``(c) Qualified Loan Amount.--The Secretary shall forgive 
     not more than $5,000 in the aggregate of the student loan 
     obligation of a borrower that is outstanding after the 
     completion of the fifth consecutive school, academic, or 
     calendar year of employment, as appropriate, described in 
     subsection (a)(1).
       ``(d) Construction.--Nothing in this section shall be 
     construed to authorize the refunding of any repayment of a 
     loan.
       ``(e) Segal Americorps Education Award Recipients.--A 
     student borrower who qualifies for the maximum education 
     award under subtitle D of title I of the National and 
     Community Service Act of 1990 (42 U.S.C. 12601 et seq.) shall 
     not receive under this section more than the difference 
     between the maximum benefit available under this section and 
     the maximum award available under such subtitle.
       ``(f) National Service Award Recipients.--A student 
     borrower who receives the maximum education award under 
     subtitle D of title I of the National and Community Service 
     Act of 1990 (42 U.S.C. 12601 et seq.) shall not receive under 
     this section more than the difference between the maximum 
     benefit available under this section and the award received 
     under such subtitle.
       ``(g) Ineligibility for Double Benefits.--No borrower may 
     receive a reduction of loan obligations under both this 
     section and section 428J or 460.
       ``(h) Definitions.--In this section:
       ``(1) Critical foreign language.--The term `critical 
     foreign language' includes the languages of Arabic, Korean, 
     Japanese, Chinese, Pashto, Persian-Farsi, Serbian-Croatian, 
     Russian, Portuguese, and any other language identified by the 
     Secretary of Education, in consultation with the Defense 
     Language Institute, the Foreign Service Institute, and the 
     National Security Education Program, as a critical foreign 
     language need.

[[Page 18491]]

       ``(2) Early childhood educator.--The term `early childhood 
     educator' means an early childhood educator who works 
     directly with children in an eligible preschool program or 
     eligible early childhood education program who has completed 
     a baccalaureate or advanced degree in early childhood 
     development, early childhood education, or in a field related 
     to early childhood education.
       ``(3) Eligible preschool program.--The term `eligible 
     preschool program' means a program that provides for the 
     care, development, and education of infants, toddlers, or 
     young children through age 5, meets any applicable State or 
     local government licensing, certification, approval, and 
     registration requirements, and is operated by--
       ``(A) a public or private school that may be supported, 
     sponsored, supervised, or administered by a local educational 
     agency;
       ``(B) a Head Start agency serving as a grantee designated 
     under the Head Start Act (42 U.S.C. 9831 et seq.);
       ``(C) a nonprofit or community based organization; or
       ``(D) a child care program, including a home.
       ``(4) Eligible early childhood education program.--The term 
     `eligible early childhood education program' means--
       ``(A) a family child care program, center-based child care 
     program, State prekindergarten program, school program, or 
     other out-of-home early childhood development care program, 
     that--
       ``(i) is licensed or regulated by the State; and
       ``(ii) serves 2 or more unrelated children who are not old 
     enough to attend kindergarten;
       ``(B) a Head Start Program carried out under the Head Start 
     Act (42 U.S.C. 9831 et seq.); or
       ``(C) an Early Head Start Program carried out under section 
     645A of the Head Start Act (42 U.S.C. 9840a).
       ``(5) Low-income community.--In this subsection, the term 
     `low-income community' means a community in which 70 percent 
     of households earn less than 85 percent of the State median 
     household income.
       ``(6) Nurse.--The term `nurse' means a nurse who meets all 
     of the following:
       ``(A) The nurse graduated from--
       ``(i) an accredited school of nursing (as those terms are 
     defined in section 801 of the Public Health Service Act (42 
     U.S.C. 296));
       ``(ii) a nursing center; or
       ``(iii) an academic health center that provides nurse 
     training.
       ``(B) The nurse holds a valid and unrestricted license to 
     practice nursing in the State in which the nurse practices in 
     a clinical setting.
       ``(C) The nurse holds one or more of the following:
       ``(i) A graduate degree in nursing, or an equivalent 
     degree.
       ``(ii) A nursing degree from a collegiate school of nursing 
     (as defined in section 801 of the Public Health Service Act 
     (42 U.S.C. 296)).
       ``(iii) A nursing degree from an associate degree school of 
     nursing (as defined in section 801 of the Public Health 
     Service Act (42 U.S.C. 296)).
       ``(iv) A nursing degree from a diploma school of nursing 
     (as defined in section 801 of the Public Health Service Act 
     (42 U.S.C. 296)).
       ``(7) Speech-language pathologist.--The term `speech-
     language pathologist' means a speech-language pathologist who 
     meets all of the following:
       ``(A) the speech-language pathologist has received, at a 
     minimum, a graduate degree in speech-language pathology or 
     communication sciences and disorders from an institution of 
     higher education accredited by an agency or association 
     recognized by the Secretary pursuant to section 496(a) of 
     this Act; and
       ``(B) the speech-language pathologist meets or exceeds the 
     qualifications as defined in section 1861(ll) of the Social 
     Security Act (42 U.S.C. 1395x).
       ``(i) Program Funding.--There shall be available to the 
     Secretary to carry out this section, from funds not otherwise 
     appropriated, such sums as may be necessary to provide loan 
     forgiveness in accordance with this section to each eligible 
     individual.''.

     SEC. 142. INCOME CONTINGENT REPAYMENT FOR PUBLIC SECTOR 
                   EMPLOYEES.

       Section 455(e) (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 or section 428C(b)(5) 
     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), social work in a public child or family service 
     agency, 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. 143. INCOME-BASED REPAYMENT.

       (a) Amendment.--Part G of title IV (20 U.S.C. 1088 et seq.) 
     is further amended by adding at the end the following:

     ``SEC. 493C. INCOME-BASED REPAYMENT.

       ``(a) Definitions.--In this section:
       ``(1) Excepted plus loan.--The term `excepted PLUS loan' 
     means a loan under section 428B, or a Federal Direct PLUS 
     Loan, that is made, insured, or guaranteed on behalf of a 
     dependent student.
       ``(2) Partial financial hardship.--The term `partial 
     financial hardship' means the amount by which--
       ``(A) the annual amount due on the total amount of loans 
     made, insured, or guaranteed under part B or D (other than an 
     excepted PLUS loan) to a borrower as calculated under the 
     standard repayment plan under section 428(b)(9)(A)(i) or 
     455(d)(1)(A); exceeds
       ``(B) 15 percent of the result obtained by calculating the 
     amount by which--
       ``(i) the borrower's, and the borrower's spouse's (if 
     applicable), adjusted gross income; exceeds
       ``(ii) 150 percent of the poverty line applicable to the 
     borrower's family size as determined under section 673(2) of 
     the Community Services Block Grant Act (42 U.S.C. 9902(2)).
       ``(b) Income-Based Repayment Program Authorized.--
     Notwithstanding any other provision of this Act, the 
     Secretary shall carry out a program under which--
       ``(1) a borrower of any loan made, insured, or guaranteed 
     under part B or D (other than an excepted PLUS loan) who has 
     a partial financial hardship may elect, during any period the 
     borrower has the partial financial hardship, to have the 
     borrower's aggregate monthly payment for all such loans not 
     exceed the result described in subsection (a)(2)(B) divided 
     by 12;
       ``(2) the holder of such a loan shall apply the borrower's 
     monthly payment under this subsection first toward interest 
     due on the loan and then toward the principal of the loan;
       ``(3) any interest due and not paid under paragraph (2) 
     shall be capitalized;
       ``(4) any principal due and not paid under paragraph (2) 
     shall be deferred;
       ``(5) the amount of time the borrower makes monthly 
     payments under paragraph (1) may exceed 10 years;
       ``(6) if the borrower no longer has a partial financial 
     hardship or no longer wishes to continue the election under 
     this subsection, then--
       ``(A) the maximum monthly payment required to be paid for 
     all loans made to the borrower under part B or D (other than 
     an excepted PLUS loan) shall not exceed the monthly amount 
     calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A) when 
     the borrower first made the election described in this 
     subsection; and
       ``(B) the amount of time the borrower is permitted to repay 
     such loans may exceed 10 years;
       ``(7) the Secretary shall repay or cancel any outstanding 
     balance of principal and interest due on all loans made under 
     part B or D (other than a loan under section 428B or a 
     Federal Direct PLUS Loan) to a borrower who--
       ``(A) is in deferment due to an economic hardship described 
     in section 435(o) for a period of time prescribed by the 
     Secretary, not to exceed 20 years; or
       ``(B)(i) makes the election under this subsection; and
       ``(ii) for a period of time prescribed by the Secretary, 
     not to exceed 20 years (including any period during which the 
     borrower is in deferment due to an economic hardship 
     described in section 435(o)), meets 1 or more of the 
     following requirements:
       ``(I) Has made reduced monthly payments under paragraph 
     (1).
       ``(II) Has made monthly payments of not less than the 
     monthly amount calculated under section 428(b)(9)(A)(i) or 
     455(d)(1)(A) when the borrower first made the election 
     described in this subsection.
       ``(III) Has made payments under a standard repayment plan 
     under section 428(b)(9)(A)(i) or 455(d)(1)(A).
       ``(IV) Has made payments under an income contingent 
     repayment plan under section 455(d)(1)(D); and
       ``(8) a borrower who is repaying a loan made under this 
     part pursuant to income-based repayment may elect, at any 
     time, to terminate repayment pursuant to income-based 
     repayment and repay such loan under the standard repayment 
     plan.''.
       (b) Conforming ICR Amendment.--Section 455(d)(1)(D) (20 
     U.S.C. 1087e(d)(1)(D)) is amended by inserting ``made on 
     behalf of a dependent student'' after ``PLUS loan''.

     SEC. 144. DEFINITION OF ECONOMIC HARDSHIP.

       Section 435(o) (20 U.S.C. 1085(o)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)(ii), by striking ``100 percent of 
     the poverty line for a family

[[Page 18492]]

     of 2'' and inserting ``150 percent of the poverty line 
     applicable to the borrower's family size'';
       (B) by striking subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (2) in paragraph (2), by striking ``(1)(C)'' and inserting 
     ``(1)(B)''.

     SEC. 145. DEFERRALS.

       (a) FISL.--Section 427(a)(2)(C)(iii) (20 U.S.C. 
     1077(a)(2)(C)(iii)) is amended by striking ``not in excess of 
     3 years''.
       (b) Interest Subsidies.--Section 428(b)(1)(M)(iv) (20 
     U.S.C. 1078(b)(1)(M)(iv)) is amended by striking ``not in 
     excess of 3 years''.
       (c) Direct Loans.--Section 455(f)(2)(D) (20 U.S.C. 
     1087e(f)(2)(D)) is amended by striking ``not in excess of 3 
     years''.
       (d) Perkins.--Section 464(c)(2)(A)(iv) (20 U.S.C. 
     1087dd(c)(2)(A)(iv)) is amended by striking ``not in excess 
     of 3 years''.

     SEC. 146. MAXIMUM REPAYMENT PERIOD.

       (a) In General.--Section 455(e) (20 U.S.C. 1087e(e)) is 
     amended by adding at the end the following:
       ``(9) Maximum repayment period.--In calculating the 
     extended period of time for which an income contingent 
     repayment plan under this subsection may be in effect for a 
     borrower, the Secretary shall include all time periods during 
     which a borrower of loans under part B, part D, or part E--
       ``(A) is not in default on any loan that is included in the 
     income contingent repayment plan; and
       ``(B)(i) is in deferment due to an economic hardship 
     described in section 435(o);
       ``(ii) makes monthly payments under paragraph (1) or (6) of 
     section 493C(b); or
       ``(iii) makes payments under a standard repayment plan 
     described in section 428(b)(9)(A)(i) or subsection 
     (d)(1)(A).''.
       (b) Technical Correction.--Section 455(d)(1)(C) (20 U.S.C. 
     1087e(d)(1)(C)) is amended by striking ``428(b)(9)(A)(v)'' 
     and inserting ``428(b)(9)(A)(iv)''.

                 TITLE II--REDUCING THE COST OF COLLEGE

     SEC. 201. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

       Title I is amended by inserting after section 131 (20 
     U.S.C. 1015) the following new section:

     ``SEC. 132. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

       ``(a) Maintenance of Effort Required.--No State shall 
     reduce the total amount provided by the State for public 
     institutions of higher education in such State for any 
     academic year beginning on or after July 1, 2008, to an 
     amount which is less than the average amount provided by such 
     State to such institutions of higher education during the 5 
     most recent preceeding academic years for which satisfactory 
     data is available.
       ``(b) Withholding of All LEAP Funds for Violations.--
     Notwithstanding any other provision of law, the Secretary of 
     Education shall withhold from any State that violates 
     subsection (a) any amount that would otherwise be available 
     to the State under the Leveraging Educational Assistance 
     Partnership Program under subpart 4 of part A of title IV 
     until such State has corrected such violation.''.

     SEC. 202. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN 
                   HIGHER EDUCATION.

       Section 131 of the Higher Education Act of 1965 (20 U.S.C. 
     1015) is amended to read as follows:

     ``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN 
                   HIGHER EDUCATION.

       ``(a) College Opportunity On-Line (COOL) Website Re-Design 
     Process.--In carrying out this section, the Commissioner of 
     Education Statistics--
       ``(1) shall identify the data elements that are of greatest 
     importance to prospective students, enrolled students, and 
     their families, paying particular attention to low-income, 
     non-traditional student populations, and first-generation 
     college students;
       ``(2) shall convene a group of individuals with expertise 
     in the collection and reporting of data related to 
     institutions of higher education, the use of consumer data, 
     and consumer marketing in general to--
       ``(A) determine the relevance of particular data elements 
     to prospective students, enrolled students, and families;
       ``(B) assess the cost-effectiveness of various ways in 
     which institutions of higher education might produce relevant 
     data;
       ``(C) determine the general comparability of the data 
     across institutions of higher education;
       ``(D) make recommendations regarding the inclusion of 
     specific data items and the most effective and least 
     burdensome methods of collecting and reporting useful data 
     from institutions of higher education; and
       ``(3) shall ensure that the redesigned COOL website--
       ``(A) uses, to the extent practicable, data elements 
     currently provided by institutions of higher education to the 
     Secretary;
       ``(B) includes clear and uniform information determined to 
     be relevant to prospective students, enrolled students, and 
     families;
       ``(C) provides comparable information, by ensuring that 
     data are based on accepted criteria and common definitions;
       ``(D) includes a sorting function that permits users to 
     customize their search for and comparison of institutions of 
     higher education based on the information identified through 
     the process as prescribed in paragraph (1) as being of 
     greatest relevance to choosing an institution of higher 
     education.
       ``(b) Data Collection.--
       ``(1) Data system.--The Commissioner of Education 
     Statistics shall continue to redesign the relevant parts of 
     the Integrated Postsecondary Education Data System to include 
     additional data as required by this section and to continue 
     to improve the usefulness and timeliness of data collected by 
     such systems in order to inform consumers about institutions 
     of higher education.
       ``(2) College consumer profile.--The Secretary shall 
     continue to publish on the COOL website, for each academic 
     year and in accordance with standard definitions developed by 
     the Commissioner of Education Statistics (including 
     definitions developed under section 131(a)(3)(A) as in effect 
     on the day before the date of enactment of the College Cost 
     Reduction Act of 2007), from at least all institutions of 
     higher education participating in programs under title IV the 
     following information:
       ``(A) The tuition and fees charged for a first-time, full-
     time, full-year undergraduate student.
       ``(B) The room and board charges for a first-time, full-
     time, full-year undergraduate student.
       ``(C) The price of attendance for a first-time, full-time, 
     full-year undergraduate student, consistent with the 
     provisions of section 472.
       ``(D) The average amount of financial assistance received 
     by a first-year, full-time, full-year undergraduate student, 
     including--
       ``(i) each type of assistance or benefits described in 
     428(a)(2)(C)(ii);
       ``(ii) institutional and other assistance; and
       ``(iii) Federal loans under parts B, D, and E of title IV.
       ``(E) The number of first-time, full-time, full-year 
     undergraduate students receiving financial assistance 
     described in each clause of subparagraph (D).
       ``(F) The institutional instructional expenditure per full-
     time equivalent student.
       ``(G) Student enrollment information, including information 
     on the number and percentage of full-time and part-time 
     students, the number and percentage of resident and non-
     resident students.
       ``(H) Faculty-to-student ratios.
       ``(I) Faculty information, including the total number of 
     faculty and the percentage of faculty who are full-time 
     employees of the institution and the percentage who are part-
     time.
       ``(J) Completion and graduation rates of undergraduate 
     students, identifying whether the completion or graduation 
     rates are from a 2-year or 4-year program of instruction and, 
     in the case of a 2-year program of instruction, the 
     percentage of students who transfer to 4-year institutions 
     prior or subsequent to completion or graduation.
       ``(K) A link to the institution of higher education with 
     information of interest to students including mission, 
     accreditation, student services (including services for 
     students with disabilities), transfer of credit policies, any 
     articulation agreements entered into by the institution, and, 
     if appropriate, placement rates and other measures of success 
     in preparing students for entry into or advancement in the 
     workforce.
       ``(L) The college affordability information elements 
     specified in subsection (c).
       ``(M) Any additional information that the Secretary may 
     require.
       ``(c) College Affordability Information Elements.--The 
     college affordability information elements required by 
     subsection (b)(2)(L) shall include, for each institution 
     submitting data--
       ``(1) the sticker price of the institution for the 3 most 
     recent academic years;
       ``(2) the net tuition price of the institution for the 3 
     most recent academic years;
       ``(3) the percentage change in both the sticker price and 
     the net tuition price over the 3-year time period that is 
     being reported;
       ``(4) the percentage change in the CPI over the same 3-year 
     time period; and
       ``(5) whether the institution has been placed on 
     affordability alert status as required by subsection (d)(3).
       ``(d) Outcomes and Actions.--
       ``(1) Response from institution.--Effective on June 30, 
     2008, an institution that increases its sticker price at a 
     percentage rate for any 3-year interval ending on or after 
     that date that exceeds two times the rate of change in the 
     CPI over the same time period shall provide a report to the 
     Secretary, in such a form, at such time, and containing such 
     information as the Secretary may require. Such report shall 
     be published by the Secretary on the COOL website, and shall 
     include--
       ``(A) a description of the factors contributing to the 
     increase in the institution's costs and in the tuition and 
     fees charged to students; and
       ``(B) if determinations of tuition and fee increases are 
     not within the exclusive control of the institution, a 
     description of the

[[Page 18493]]

     agency or instrumentality of State government or other entity 
     that participates in such determinations and the authority 
     exercised by such agency, instrumentality, or entity.
       ``(2) Quality-efficiency task forces.--
       ``(A) Required.--Each institution subject to paragraph (1) 
     that has a percentage change in its sticker price that is in 
     the highest 5 percent of all institutions subject to 
     paragraph (1) shall establish a quality-efficiency task force 
     to review the operations of such institution.
       ``(B) Membership.--Such task force shall include 
     administrators, business and civic leaders, and faculty, and 
     may include students, trustees, parents of students, and 
     alumni of such institution.
       ``(C) Functions.--Such task force shall analyze 
     institutional operating costs in comparison with such costs 
     at other institutions within the class of institutions. Such 
     analysis should identify areas where, in comparison with 
     other institutions in such class, the institution operates 
     more expensively to produce a similar result. Any identified 
     areas should then be targeted for in-depth analysis for cost 
     reduction opportunities.
       ``(D) Report.--Not later than one year after a quality-
     efficiency task force is established pursuant to subparagraph 
     (A), the results of the analysis by a such task force shall 
     be submitted to the Secretary and shall be made available to 
     the public on the COOL website.
       ``(3) Consequences for 2-year continuation of failure.--If 
     the Secretary determines that an institution that is subject 
     to paragraph (1)) has failed to reduce the subsequent 
     increase in sticker price to equal to or below two times the 
     rate of change in the CPI for 2 consecutive academic years 
     subsequent to the 3-year interval used under paragraph (1), 
     the Secretary shall place the institution on affordability 
     alert status.
       ``(4) Exemptions.--Notwithstanding paragraph (3), an 
     institution shall not be placed on affordability alert status 
     if, for any 3-year interval for which sticker prices are 
     computed under paragraph (1)--
       ``(A) with respect to the class of institutions described 
     in paragraph (6) to which the institution belongs, the 
     sticker price of the institution is in the lowest quartile of 
     institutions within such class, as determined by the 
     Secretary, during the last year of such 3-year interval; or
       ``(B) the institution has a percentage change in its 
     sticker price computed under paragraph (1) that exceeds two 
     times the rate of change in the CPI over the same time 
     period, but the dollar amount of the sticker price increase 
     is less than $500.
       ``(5) Information to state agencies.--Any institution that 
     reports under paragraph (1)(B) that an agency or 
     instrumentality of State government or other entity 
     participates in the determinations of tuition and fee 
     increases shall, prior to submitting any information to the 
     Secretary under this subsection, submit such information to, 
     and request the comments and input of, such agency, 
     instrumentality, or entity. With respect to any such 
     institution, the Secretary shall provide a copy of any 
     communication by the Secretary with that institution to such 
     agency, instrumentality, or entity.
       ``(6) Classes of institutions.--For purposes of this 
     subsection, the classes of institutions shall be those 
     sectors used by the Integrated Postsecondary Education Data 
     System, based on whether the institution is public, nonprofit 
     private, or for-profit private, and whether the institution 
     has a 4-year, 2-year, or less than 2-year program of 
     instruction.
       ``(7) Data rejection.--Nothing in this subsection shall be 
     construed as allowing the Secretary to reject the data 
     submitted by an individual institution of higher education.
       ``(e) Information to the Public.--The Secretary shall work 
     with public and private entities to promote broad public 
     awareness, particularly among middle and high school students 
     and their families, of the information made available under 
     this section, including by distribution to students who 
     participate in or receive benefits from means-tested 
     federally funded education programs and other Federal 
     programs determined by the Secretary.
       ``(f) Fines.--In addition to actions authorized in section 
     487(c), the Secretary may impose a fine in an amount not to 
     exceed $25,000 on an institution of higher education for 
     failing to provide the information required by this section 
     in a timely and accurate manner, or for failing to otherwise 
     cooperate with the National Center for Education Statistics 
     regarding efforts to obtain data under subsections (c) and 
     (i) and pursuant to the program participation agreement 
     entered into under section 487.
       ``(g) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out the 
     provisions of this section.
       ``(h) Definitions.--For the purposes of this section:
       ``(1) Net tuition price.--The term `net tuition price' 
     means the average tuition and fees charged to a first-time, 
     full-time, full-year undergraduate student, minus the average 
     grants provided to such students, for any academic year.
       ``(2) Sticker price.--The term `sticker price' means the 
     average tuition and fees charged to a first-time, full-time, 
     full-year undergraduate student by an institution of higher 
     education for any academic year.
       ``(3) CPI.--The term `CPI' means the Consumer Price Index-
     All Urban Consumers (Current Series).''.

     SEC. 203. INCENTIVES AND REWARDS FOR LOW TUITION.

       Subpart 1 of part A of title IV is amended by inserting 
     after section 401A (20 U.S.C. 1070a-1) the following new 
     section:

     ``SEC. 401B. INCENTIVES AND REWARDS FOR LOW TUITION.

       ``(a) Rewards for Low Tuition.--For any institution of 
     higher education that, for academic year 2008-2009 or any 
     succeeding academic year, such institution's annual net 
     tuition price increase (expressed as a percentage) for the 
     most recent academic year for which satisfactory data is 
     available is equal to or less than the percentage change in 
     the higher education price index for such academic year, the 
     Secretary shall, notwithstanding any other provision of the 
     law, provide such institution an amount sufficient to provide 
     a 25 percent increase under subpart 1 of part A of title IV 
     to each Pell Grant recipient attending such institution for 
     the next award year beginning after the date of such 
     determination. Each such institution shall distribute any 
     amounts received under this subsection among such Pell Grant 
     recipients by increasing the amount of their Pell Grant 
     awards by 25 percent.
       ``(b) Rewards for Guaranteed Tuition.--
       ``(1) Bonus.--For each institution of higher education that 
     the Secretary of Education determines complies with the 
     requirements of paragraph (2) or paragraph (3) of this 
     subsection, the Secretary shall, notwithstanding any other 
     provision of the law, provide such institution an amount 
     sufficient to provide a 10 percent increase under subpart 1 
     of part A of title IV to each Pell Grant recipient attending 
     such institution for the next award year beginning after the 
     date of such determination. Each such institution shall 
     distribute any amounts received under this subsection among 
     such Pell Grant recipients by increasing the amount of their 
     Pell Grant awards by 10 percent.
       ``(2) 4-year institutions.--An institution of higher 
     education that provides a program of instruction for which it 
     awards a bachelor's degree complies with the requirements of 
     this paragraph if such institution guarantees that for any 
     academic year beginning on or after July 1, 2008, and for 
     each of the 4 succeeding continuous academic years, the net 
     tuition price charged to an undergraduate student will not 
     exceed--
       ``(A) the amount that the student was charged for an 
     academic year at the time he or she first enrolled in the 
     institution of higher education, plus
       ``(B) the product of the percentage increase in the higher 
     education price index for the prior academic year, or the 
     most recent prior academic year for which data is available, 
     multiplied by the amount determined under subparagraph (A).
       ``(3) Less-than 4-year institutions.--An institution of 
     higher education that does not provide a program of 
     instruction for which it awards a bachelor's degree complies 
     with the requirements of this paragraph if such institution 
     guarantees that for any academic year (or the equivalent) 
     beginning on or after July 1, 2008, and for each of the 1.5 
     succeeding continuous academic years, the net tuition price 
     charged to an undergraduate student will not exceed--
       ``(A) the amount that the student was charged for an 
     academic year at the time he or she first enrolled in the 
     institution of higher education, plus
       ``(B) the product of the percentage increase in the higher 
     education price index for the prior academic year, or the 
     most recent prior academic year for which data is available, 
     multiplied by the amount determined under subparagraph (A).
       ``(c) Maintaining Affordable Tuition.--For any institution 
     of higher education whose increase in the annual net tuition 
     price (expressed as a percentage), for the most recent 
     academic year for which satisfactory data is available, is 
     greater than the percentage increase in the higher education 
     price index for such academic year, the Secretary shall 
     require such institution to submit to the Secretary the 
     following information, within 6 months of such determination:
       ``(1) a detailed report on the exact causes for the net 
     tuition price increase that outlines revenues and 
     expenditures; and
       ``(2) cost containment strategies to lower net tuition 
     prices.
       ``(d) Definitions.--
       ``(1) Net tuition price.--The term `net tuition price' has 
     the same meaning as provided in section 131(k).
       ``(2) Higher education price index.--The term `higher 
     education price index' means a statistical measure of change 
     over time in the prices of a fixed market basket of goods and 
     services purchased by colleges and universities through 
     current fund educational and general expenditures (excluding 
     expenditures for research), as developed by the Bureau of 
     Labor Statistics.
       ``(e) Funding.--There shall be available to the Secretary 
     to carry out this section, from funds not otherwise 
     appropriated, $15,000,000 for each of the fiscal years 2008 
     through 2012.

[[Page 18494]]

       ``(f) Sunset.--The authority to carry out this section 
     shall expire at the end of fiscal year 2012.''.

     SEC. 204. COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT 
                   RESTRAIN TUITION INCREASES.

       The Higher Education Act of 1965 (20 U.S.C. 1101 et seq.) 
     is amended by adding at the end the following title:

   ``TITLE VIII--COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT 
                       RESTRAIN TUITION INCREASES

     ``SEC. 801. ELIGIBLE INSTITUTIONS.

       ``(a) Eligible Institutions.--An institution of higher 
     education shall be eligible to apply for a grant under this 
     title if such institution, and a combination of such 
     institutions shall be eligible to apply for such a grant if 
     each institution in such combination--
       ``(1) for the academic year for which the institution is 
     applying, keeps such institution's annual net tuition price 
     increase (expressed as a percentage) for the most recent 
     academic year for which satisfactory data is available equal 
     to or less than the percentage change in the higher education 
     price index for such year; and
       ``(2) for such academic year, provides the guarantee 
     required by paragraph (2) or (3) of section 401A(b).
       ``(b) Definitions.--
       ``(1) Cooperative education.--For the purpose of this title 
     the term `cooperative education' means the provision of 
     alternating or parallel periods of academic study and public 
     or private employment in order to give students work 
     experiences related to their academic or occupational 
     objectives and an opportunity to earn the funds necessary for 
     continuing and completing their education.
       ``(2) Calculation of index.--The net tuition price index 
     shall be equal to the percentage increase in the net tuition 
     price charged for a first-time, full-time, full-year 
     undergraduate student between a preceding academic year and 
     the most recent academic year for which satisfactory data are 
     available.
       ``(3) Net tuition price.--The term `net tuition price' 
     means the average tuition and fees charged to first-time, 
     full-year, full-time undergraduate students, minus the 
     average grants provided to such students, for any academic 
     year.
       ``(4) Tuition.--The term `tuition' means the average price 
     of or payment for actual instruction of first-time, full-
     year, full-time undergraduate students at an institution of 
     higher education, for any academic year.

     ``SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.

       ``(a) Appropriations.--There shall be available to the 
     Secretary to carry out this title from funds not otherwise 
     appropriated $15,000,000 for each of the fiscal years 2008 
     through 2012.
       ``(b) Reservations.--Of the amount appropriated for each 
     such fiscal year--
       ``(1) not less than 50 percent shall be available for 
     carrying out grants to institutions of higher education and 
     combinations of such institutions described in section 
     803(a)(1)(A) for cooperative education under section 803;
       ``(2) not less than 25 percent shall be available for 
     carrying out grants to institutions of higher education 
     described in section 803(a)(1)(B) for cooperative education 
     under section 803;
       ``(3) not to exceed 11 percent shall be available for 
     demonstration projects under paragraph (1) of section 804(a);
       ``(4) not to exceed 11 percent shall be available for 
     training and resource centers under paragraph (2) of section 
     804(a); and
       ``(5) not to exceed 3 percent shall be available for 
     research under paragraph (3) of section 804(a).
       ``(c) Availability of Appropriations.--Appropriations under 
     this title shall not be available for the payment of 
     compensation of students for employment by employers under 
     arrangements pursuant to this title.
       ``(d) Sunset.--The authority to carry out this title shall 
     expire at the end of fiscal year 2012.

     ``SEC. 803. GRANTS FOR COOPERATIVE EDUCATION.

       ``(a) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized--
       ``(A) from the amount available under section 802(b)(1) in 
     each fiscal year and in accordance with the provisions of 
     this title, to make grants to institutions of higher 
     education or combinations of such institutions that have not 
     received a grant under this paragraph in the 10-year period 
     preceding the date for which a grant under this section is 
     requested to pay the Federal share of the cost of planning, 
     establishing, expanding, or carrying out programs of 
     cooperative education by such institutions or combinations of 
     institutions; and
       ``(B) from the amount available under section 802(b)(2) in 
     each fiscal year and in accordance with the provisions of 
     this title, to make grants to institutions of higher 
     education that are operating an existing cooperative 
     education program as determined by the Secretary to pay the 
     cost of planning, establishing, expanding, or carrying out 
     programs of cooperative education by such institutions.
       ``(2) Program requirement.--Cooperative education programs 
     assisted under this section shall provide alternating or 
     parallel periods of academic study and of public or private 
     employment, giving students work experience related to their 
     academic or occupational objectives and the opportunity to 
     earn the funds necessary for continuing and completing their 
     education.
       ``(3) Amount of grants.--
       ``(A) The amount of each grant awarded pursuant to 
     paragraph (1)(A) to any institution of higher education or 
     combination of such institutions in any fiscal year shall not 
     exceed $500,000.
       ``(B)(i) Except as provided in clauses (ii) and (iii), the 
     Secretary shall award grants in each fiscal year to each 
     institution of higher education described in paragraph (1)(B) 
     that has an application approved under subsection (b) in an 
     amount which bears the same ratio to the amount reserved 
     pursuant to section 802(b)(2) for such fiscal year as the 
     number of unduplicated students placed in cooperative 
     education jobs during the preceding fiscal year (other than 
     cooperative education jobs under section 804 and as 
     determined by the Secretary) by such institution of higher 
     education bears to the total number of all such students 
     placed in such jobs during the preceding fiscal year by all 
     such institutions.
       ``(ii) No institution of higher education shall receive a 
     grant pursuant to paragraph (1)(B) in any fiscal year in an 
     amount which exceeds 25 percent of such institution's 
     cooperative education program's personnel and operating 
     budget for the preceding fiscal year.
       ``(iii) The minimum annual grant amount which an 
     institution of higher education is eligible to receive under 
     paragraph (1)(B) is $1,000 and the maximum annual grant 
     amount is $75,000.
       ``(4) Limitation.--The Secretary shall not award grants 
     pursuant to paragraphs (1)(A) and (1)(B) to the same 
     institution of higher education or combination of such 
     institution in any one fiscal year.
       ``(5) Uses.--Grants under paragraph (1)(B) shall be used 
     exclusively--
       ``(A) to expand the quality and participation of a 
     cooperative education program;
       ``(B) for outreach in new curricular areas; and
       ``(C) for outreach to potential participants including 
     underrepresented and nontraditional populations.
       ``(b) Applications.--Each institution of higher education 
     or combination of such institutions desiring to receive a 
     grant under this section shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     shall prescribe. Each such application shall--
       ``(1) set forth the program or activities for which a grant 
     is authorized under this section;
       ``(2) specify each portion of such program or activities 
     which will be performed by a nonprofit organization or 
     institution other than the applicant and the compensation to 
     be paid for such performance;
       ``(3) provide that the applicant will expend during such 
     fiscal year for the purpose of such program or activities not 
     less than the amount expended for such purpose during the 
     previous fiscal year;
       ``(4) describe the plans which the applicant will carry out 
     to assure, and contain a formal statement of the 
     institution's commitment which assures, that the applicant 
     will continue the cooperative education program beyond the 5-
     year period of Federal assistance described in subsection 
     (c)(1) at a level which is not less than the total amount 
     expended for such program during the first year such program 
     was assisted under this section;
       ``(5) provide that, in the case of an institution of higher 
     education that provides a 2-year program which is acceptable 
     for full credit toward a bachelor's degree, the cooperative 
     education program will be available to students who are 
     certificate or associate degree candidates and who carry at 
     least one-half the normal full-time academic workload;
       ``(6) provide that the applicant will--
       ``(A) for each fiscal year for which the applicant receives 
     a grant, make such reports with respect to the impact of the 
     cooperative education program in the previous fiscal year as 
     may be essential to ensure that the applicant is complying 
     with the provisions of this section, including--
       ``(i) the number of unduplicated student applicants in the 
     cooperative education program;
       ``(ii) the number of unduplicated students placed in 
     cooperative education jobs;
       ``(iii) the number of employers who have hired cooperative 
     education students;
       ``(iv) the average income for students derived from working 
     in cooperative education jobs; and
       ``(v) the increase or decrease in the number of 
     unduplicated students placed in cooperative education jobs in 
     each fiscal year compared to the previous fiscal year; and
       ``(B) keep such records as are essential to ensure that the 
     applicant is complying with the provisions of this title, 
     including the notation of cooperative education employment on 
     the student's transcript;

[[Page 18495]]

       ``(7) describe the extent to which programs in the academic 
     discipline for which the application is made have had a 
     favorable reception by public and private sector employers;
       ``(8) describe the extent to which the institution is 
     committed to extending cooperative education on an 
     institution-wide basis for all students who can benefit;
       ``(9) describe the plans that the applicant will carry out 
     to evaluate the applicant's cooperative education program at 
     the end of the grant period;
       ``(10) provide for such fiscal control and fund accounting 
     procedures as may be necessary to assure proper disbursement 
     of, and accounting for, Federal funds paid to the applicant 
     under this title;
       ``(11) demonstrate a commitment to serving all underserved 
     populations; and
       ``(12) include such other information as is essential to 
     carry out the provisions of this title.
       ``(c) Duration of Grants; Federal Share.--
       ``(1) Duration of grants.--No individual institution of 
     higher education may receive, individually or as a 
     participant in a combination of such institutions--
       ``(A) a grant pursuant to subsection (a)(1)(A) for more 
     than 5 fiscal years; or
       ``(B) a grant pursuant to subsection (a)(1)(B) for more 
     than 5 fiscal years.
       ``(2) Federal share.--The Federal share of a grant under 
     section 803(a)(1)(A) may not exceed--
       ``(A) 85 percent of the cost of carrying out the program or 
     activities described in the application in the first year the 
     applicant receives a grant under this section;
       ``(B) 70 percent of such cost in the second such year;
       ``(C) 55 percent of such cost in the third such year;
       ``(D) 40 percent of such cost in the fourth such year; and
       ``(E) 25 percent of such cost in the fifth such year.
       ``(3) Special rule.--Any provision of law to the contrary 
     notwithstanding, the Secretary shall not waive the provisions 
     of this subsection.
       ``(d) Maintenance of Effort.--If the Secretary determines 
     that a recipient of funds under this section has failed to 
     maintain the fiscal effort described in subsection (b)(3), 
     then the Secretary may elect not to make grant payments under 
     this section to such recipient.

     ``SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING 
                   AND RESOURCE CENTERS; AND RESEARCH.

       ``(a) Authorization.--The Secretary is authorized, in 
     accordance with the provisions of this section, to make 
     grants and enter into contracts for--
       ``(1) the conduct of demonstration projects designed to 
     demonstrate or determine the feasibility or value of 
     innovative methods of cooperative education from the amounts 
     available in each fiscal year under section 802(b)(3);
       ``(2) the conduct of training and resource centers designed 
     to--
       ``(A) train personnel in the field of cooperative 
     education;
       ``(B) improve materials used in cooperative education 
     programs if such improvement is conducted in conjunction with 
     other activities described in this paragraph;
       ``(C) furnish technical assistance to institutions of 
     higher education to increase the potential of the institution 
     to continue to conduct a cooperative education program 
     without Federal assistance;
       ``(D) encourage model cooperative education programs which 
     furnish education and training in occupations in which there 
     is a national need;
       ``(E) support partnerships under which an institution 
     carrying out a comprehensive cooperative education program 
     joins with one or more institutions of higher education in 
     order to (i) assist the institutions other than the 
     comprehensive cooperative education institution to develop 
     and expand an existing program of cooperative education, or 
     (ii) establish and improve or expand comprehensive 
     cooperative education programs; and
       ``(F) encourage model cooperative education programs in the 
     fields of science and mathematics for women and minorities 
     who are underrepresented in such fields

     from the amounts available in each fiscal year under section 
     802(b)(4); and
       ``(3) the conduct of research relating to cooperative 
     education, from the amounts available in each fiscal year 
     under section 802(b)(5).
       ``(b) Administrative Provision.--
       ``(1) In general.--To carry out this section, the Secretary 
     may--
       ``(A) make grants to or contracts with institutions of 
     higher education, or combinations of such institutions; and
       ``(B) make grants to or contracts with other public or 
     private nonprofit agencies or organizations, whenever such 
     grants or contracts will make an especially significant 
     contribution to attaining the objectives of this section.
       ``(2) Limitation.--
       ``(A) The Secretary may not use more than 3 percent of the 
     amount appropriated to carry out this section in each fiscal 
     year to enter into contracts described in paragraph (1)(A).
       ``(B) The Secretary may use not more than 3 percent of the 
     amount appropriated to carry out this section in each fiscal 
     year to enter into contracts described in paragraph (1)(B).
       ``(c) Supplement Not Supplant.--A recipient of a grant or 
     contract under this section may use the funds provided only 
     so as to supplement and, to the extent possible, increase the 
     level of funds that would, in the absence of such funds, be 
     made available from non-Federal sources to carry out the 
     activities supported by such grant or contract, and in no 
     case to supplant such funds from non-Federal sources.''.

   TITLE III--ENSURING A HIGHLY QUALIFIED TEACHER IN EVERY CLASSROOM

                          PART A--TEACH GRANTS

     SEC. 301. TEACH GRANTS.

       Part A of title IV (20 U.S.C. 1070a et seq.) is amended by 
     adding at the end the following new subpart:

                       ``Subpart 9--TEACH Grants

     ``SEC. 420L. PROGRAM ESTABLISHED.

       ``(a) Program Authority.--
       ``(1) Payments required.--The Secretary shall pay to each 
     eligible institution such sums as may be necessary to pay to 
     each eligible student (defined in accordance with section 
     484) who files an application and agreement in accordance 
     with section 420M, and who qualifies--
       ``(A) under paragraph (2) of section 420M(a), a TEACH Grant 
     in the amount of $4,000 for each academic year during which 
     that student is in attendance at the institution; and
       ``(B) under paragraphs (2) and (3) of section 420M(a), a 
     Bonus TEACH Grant in the amount of $500 (in addition to the 
     amount of the TEACH Grant under subparagraph (A)) for each 
     academic year during which that student so qualifies.
       ``(2) Reference.--Grants made under--
       ``(A) paragraph (1)(A) shall be known as `Teacher Education 
     Assistance for College and Higher Education Grants' or `TEACH 
     Grants'; and
       ``(B) paragraph (1)(B) shall be known as Bonus TEACH 
     Grants.
       ``(b) Payment Methodology.--
       ``(1) Prepayment.--Not less than 85 percent of any funds 
     provided to an institution under subsection (a) shall be 
     advanced to eligible institutions prior to the start of each 
     payment period and shall be based upon an amount requested by 
     the institution as needed to pay eligible students until such 
     time as the Secretary determines and publishes in the Federal 
     Register with an opportunity for comment, an alternative 
     payment system that provides payments to institutions in an 
     accurate and timely manner, except that this sentence shall 
     not be construed to limit the authority of the Secretary to 
     place an institution on a reimbursement system of payment.
       ``(2) Direct payment.--Nothing in this section shall be 
     interpreted to prohibit the Secretary from paying directly to 
     students, in advance of the beginning of the academic term, 
     an amount for which they are eligible, in cases where the 
     eligible institution elects not to participate in the 
     disbursement system required by paragraph (1).
       ``(3) Distribution of grants to students.--Payments under 
     this subpart shall be made, in accordance with regulations 
     promulgated by the Secretary for such purpose, in such manner 
     as will best accomplish the purposes of this subpart. Any 
     disbursement allowed to be made by crediting the student's 
     account shall be limited to tuition and fees and, in the case 
     of institutionally-owned housing, room and board. The student 
     may elect to have the institution provide other such goods 
     and services by crediting the student's account.
       ``(c) Reductions in Amount.--
       ``(1) Part-time students.--In any case where a student 
     attends an institution of higher education on less than a 
     full-time basis (including a student who attends an 
     institution of higher education on less than a half-time 
     basis) during any academic year, the amount of a grant under 
     this subpart for which that student is eligible shall be 
     reduced in proportion to the degree to which that student is 
     not attending on a full-time basis, in accordance with a 
     schedule of reductions established by the Secretary for the 
     purposes of this subpart, computed in accordance with this 
     subpart. Such schedule of reductions shall be established by 
     regulation and published in the Federal Register in 
     accordance with section 482 of this Act.
       ``(2) No exceeding cost.--The amount of a grant awarded 
     under this subpart, in combination with Federal assistance 
     and other student assistance, shall not exceed the cost of 
     attendance (as defined in section 472) at the institution at 
     which that student is in attendance. If, with respect to any 
     student, it is determined that the amount of a TEACH Grant or 
     a Bonus TEACH Grant exceeds the cost of attendance for that 
     year, the amount of the TEACH Grant or Bonus TEACH Grant, 
     respectively, shall be reduced until such grant does not 
     exceed the cost of attendance at such institution.
       ``(d) Period of Eligibility for Grants.--
       ``(1) Undergraduate students.--The period during which an 
     undergraduate student may receive grants under this subpart 
     shall be the period required for the completion of the first 
     undergraduate baccalaureate course of study being pursued by 
     that student at the

[[Page 18496]]

     institution at which the student is in attendance except 
     that--
       ``(A) any period during which the student is enrolled in a 
     noncredit or remedial course of study as defined in paragraph 
     (3) shall not be counted for the purpose of this paragraph; 
     and
       ``(B) the total amount that a student may receive under 
     this subpart for undergraduate study shall not exceed $16,000 
     with respect to a student who receives only TEACH Grants, and 
     $18,000 with respect to a student who receives TEACH Grants 
     and Bonus TEACH Grants.
       ``(2) Graduate students.--The period during which a 
     graduate student may receive grants under this subpart shall 
     be the period required for the completion of a master's 
     degree course of study being pursued by that student at the 
     institution at which the student is in attendance, except 
     that the total amount that a student may receive under this 
     subpart for graduate study shall not exceed $8,000 with 
     respect to a student who receives only TEACH Grants, and 
     $10,000 with respect to a student who receives TEACH Grants 
     and Bonus TEACH Grants.
       ``(3) Remedial course; study abroad.--Nothing in this 
     section shall exclude from eligibility courses of study which 
     are noncredit or remedial in nature (including courses in 
     English language acquisition) which are determined by the 
     institution to be necessary to help the student be prepared 
     for the pursuit of a first undergraduate baccalaureate degree 
     or certificate or, in the case of courses in English language 
     instruction, to be necessary to enable the student to utilize 
     already existing knowledge, training, or skills. Nothing in 
     this section shall exclude from eligibility programs of study 
     abroad that are approved for credit by the home institution 
     at which the student is enrolled.

     ``SEC. 420M. ELIGIBILITY; APPLICATIONS; SELECTION.

       ``(a) Applications; Demonstration of Eligibility.--
       ``(1) Filing required.--The Secretary shall from time to 
     time set dates by which students shall file applications for 
     grants under this subpart. Each student desiring a grant 
     under this subpart for any year shall file an application 
     containing such information and assurances as the Secretary 
     may deem necessary to enable the Secretary to carry out the 
     functions and responsibilities of this subpart.
       ``(2) Demonstration of teach grant eligibility.--Each 
     application submitted under paragraph (1) for a TEACH Grant 
     shall contain such information as is necessary to demonstrate 
     that--
       ``(A) if the applicant is an enrolled student--
       ``(i) the student is an eligible student for purposes of 
     section 484;
       ``(ii) the student--

       ``(I) has a grade point average that is determined, under 
     standards prescribed by the Secretary, to be comparable to a 
     3.25 average on a zero to 4.0 scale, except that, if the 
     student is in the first year of a program of undergraduate 
     education, such grade point average shall be determined on 
     the basis of the student's cumulative high school grade point 
     average; or
       ``(II) displayed high academic aptitude by receiving a 
     score above the 75th percentile on at least one of the 
     batteries in an undergraduate or graduate school admissions 
     test; and

       ``(iii) the student is completing coursework and other 
     requirements necessary to begin a career in teaching, or 
     plans to complete such coursework and requirements prior to 
     graduating; or
       ``(B) if the applicant is a current or prospective teacher 
     applying for a grant to obtain a graduate degree--
       ``(i) the applicant is a teacher or a retiree from another 
     occupation with expertise in a field in which there is a 
     shortage of teachers, such as math, science, special 
     education, English language acquisition, or another high-need 
     subject; or
       ``(ii) the applicant is or was a teacher who is using high-
     quality alternative certification routes, such as Teach for 
     America, to get certified.
       ``(3) Demonstration of bonus teach grant eligibility.--Each 
     application submitted under paragraph (1) for a Bonus TEACH 
     Grant shall contain such information as is necessary to 
     demonstrate that--
       ``(A) the applicant is eligible for, and has applied for, a 
     TEACH Grant; and
       ``(B) the applicant is--
       ``(i) a student pursuing an undergraduate degree in 
     mathematics, science, or a science-related field; and
       ``(ii) a student enrolled in a qualified teacher 
     preparation program, as defined in section 420N.
       ``(b) Agreements To Serve.--Each application under 
     subsection (a) shall contain or be accompanied by an 
     agreement by the applicant that--
       ``(1) the applicant will--
       ``(A) serve as a full-time teacher for a total of not less 
     than 4 academic years within 8 years after completing the 
     course of study for which the applicant received a TEACH 
     Grant under this subpart;
       ``(B) teach in a school described in section 465(a)(2)(A);
       ``(C) with respect to an applicant for--
       ``(i) TEACH Grants, teach in any of the following fields: 
     mathematics, science, a foreign language, bilingual 
     education, or special education, or as a reading specialist, 
     or another field documented as high-need by the Federal 
     Government, State government, or local education agency and 
     approved by the Secretary; or
       ``(ii) TEACH Grants and Bonus TEACH Grants, teach 
     mathematics, science, or a science-related field;
       ``(D) submit evidence of such employment in the form of a 
     certification by the chief administrative officer of the 
     school upon completion of each year of such service; and
       ``(E) comply with the requirements for being a highly 
     qualified teacher as defined in section 9101 of the 
     Elementary and Secondary Education Act of 1965; and
       ``(2) in the event that the applicant is determined to have 
     failed or refused to carry out such service obligation, the 
     sum of the amounts of any TEACH Grants and Bonus TEACH Grants 
     received by such applicant will be treated as a loan and 
     collected from the applicant in accordance with subsection 
     (c) and the regulations thereunder.
       ``(c) Repayment for Failure To Complete Service.--In the 
     event that any recipient of a grant under this subpart fails 
     or refuses to comply with the service obligation in the 
     agreement under subsection (b), the sum of the amounts of any 
     TEACH Grants and Bonus TEACH Grants received by such 
     recipient shall be treated as a Direct Loan under part D of 
     title IV, and shall be subject to repayment, together with 
     interest thereon accruing after the period of service, in 
     accordance with terms and conditions specified by the 
     Secretary in regulations under this subpart.

     ``SEC. 420N. DEFINITIONS.

       ``For the purposes of this subpart:
       ``(1) Eligible institution.--The term `eligible 
     institution' means an institution of higher education as 
     defined in section 102, except that such term does not 
     include an institution described in subsection (a)(1)(A) of 
     that section.
       ``(2) Qualified teacher preparation program.--The term 
     `qualified teacher preparation program' means a program for 
     students described in subsection (a)(2)(A) of section 420M or 
     teachers described in subsection (a)(2)(B) of such section 
     (referred to jointly in this paragraph as `teacher 
     candidates') that--
       ``(A) recruits and prepares teacher candidates who major in 
     science, technology fields, engineering, or mathematics 
     disciplines to become certified as elementary and secondary 
     teachers in those disciplines, with the goals of improving 
     teacher knowledge and effectiveness and increasing elementary 
     and secondary student academic achievement;
       ``(B) is implemented by an institution of higher education 
     in partnership with high-need local educational agencies;
       ``(C) offers a baccalaureate degree with a concurrent 
     teacher certification to teacher candidates;
       ``(D) is implemented in coordination with the faculty of 
     the education, sciences, and mathematics departments of the 
     institution of higher education;
       ``(E) utilizes experienced teachers who have a demonstrated 
     record of success in teaching underserved students to 
     instruct teacher candidates in science, technology fields, 
     engineering, or mathematics disciplines;
       ``(F) provides teacher candidates with--
       ``(i) support services, including mentoring by experienced 
     teachers who have a demonstrated record of success in 
     teaching underserved students;
       ``(ii) exposure to, and field experience in, the classroom 
     within the first year of entering the qualified teacher 
     preparation program; and
       ``(iii) other related support practices while the teacher 
     candidates are participating in the program, and after such 
     candidates graduate from the isntitution of higher education 
     and are employed as teachers;
       ``(G) participates in partnerships which include the 
     institution of higher education and local educational 
     agencies and charter districts to provide opportunities for 
     teacher candidate field work;
       ``(H) focuses on increasing the number of teachers in the 
     science, technology fields, engineering, or mathematics 
     disciplines; and
       ``(I) encourages individuals from underrepresented 
     populations to enter into the teaching profession.

     ``SEC. 420O. PROGRAM PERIOD AND FUNDING.

       ``There shall be available to the Secretary to carry out 
     this subpart, from funds not otherwise appropriated, such 
     sums as may be necessary to provide TEACH Grants and Bonus 
     TEACH Grants in accordance with this subpart to each eligible 
     student.''.

                     PART B--CENTERS OF EXCELLENCE

     SEC. 311. CENTERS OF EXCELLENCE.

       Title II (20 U.S.C. 1021 et seq.) is amended by adding at 
     the end the following:

                    ``PART C--CENTERS OF EXCELLENCE

     ``SEC. 231. DEFINITIONS.

       ``As used in this part:
       ``(1) Eligible institution.--The term `eligible 
     institution' means--
       ``(A) an institution of higher education that has a teacher 
     preparation program that

[[Page 18497]]

     meets the requirements of section 203(b)(2) and that is--
       ``(i) a part B institution (as defined in section 322);
       ``(ii) a Hispanic-serving institution (as defined in 
     section 502);
       ``(iii) a Tribal College or University (as defined in 
     section 316);
       ``(iv) an Alaska Native-serving institution (as defined in 
     section 317(b)); or
       ``(v) a Native Hawaiian-serving institution (as defined in 
     section 317(b));
       ``(B) a consortium of institutions described in 
     subparagraph (A); or
       ``(C) an institution described in subparagraph (A), or a 
     consortium described in subparagraph (B), in partnership with 
     any other institution of higher education, but only if the 
     center of excellence established under section 232 is located 
     at an institution described in subparagraph (A).
       ``(2) Highly qualified.--The term `highly qualified' when 
     used with respect to an individual means that the individual 
     is highly qualified as determined under section 9101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801) or section 602 of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1401).
       ``(3) 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 (20 U.S.C. 6368).
       ``(4) 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 (20 U.S.C. 7801).

     ``SEC. 232. CENTERS OF EXCELLENCE.

       ``(a) Program Authorized.--From the amounts appropriated to 
     carry out this part, the Secretary is authorized to award 
     competitive grants to eligible institutions to establish 
     centers of excellence.
       ``(b) Use of Funds.--Grants provided by the Secretary under 
     this part shall be used to ensure that current and future 
     teachers are highly qualified, by carrying out one or more of 
     the following activities:
       ``(1) Implementing reforms within teacher preparation 
     programs to ensure that such programs are preparing teachers 
     who are highly qualified, are able to understand 
     scientifically based research, and are able to use advanced 
     technology effectively in the classroom, including use for 
     instructional techniques to improve student academic 
     achievement, by--
       ``(A) retraining faculty; and
       ``(B) designing (or redesigning) teacher preparation 
     programs that--
       ``(i) prepare teachers to close student achievement gaps, 
     are based on rigorous academic content, scientifically based 
     research (including scientifically based reading research), 
     and challenging State student academic content standards; and
       ``(ii) promote strong teaching skills.
       ``(2) Providing sustained and high-quality preservice 
     clinical experience, including the mentoring of prospective 
     teachers by exemplary teachers, 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, 
     for such interaction.
       ``(3) Developing and implementing initiatives to promote 
     retention of highly qualified teachers and principals, 
     including minority teachers and principals, including 
     programs that provide--
       ``(A) teacher or principal mentoring from exemplary 
     teachers or principals; or
       ``(B) induction and support for teachers and principals 
     during their first 3 years of employment as teachers or 
     principals, respectively.
       ``(4) Awarding scholarships based on financial need to help 
     students pay the costs of tuition, room, board, and other 
     expenses of completing a teacher preparation program.
       ``(5) Disseminating information on effective practices for 
     teacher preparation and successful teacher certification and 
     licensure assessment preparation strategies.
       ``(6) Activities authorized under sections 202, 203, and 
     204.
       ``(c) Application.--Any eligible institution desiring a 
     grant under this section shall submit an application to the 
     Secretary at such a time, in such a manner, and accompanied 
     by such information the Secretary may require.
       ``(d) Minimum Grant Amount.--The minimum amount of each 
     grant under this part shall be $500,000.
       ``(e) Limitation on Administrative Expenses.--An eligible 
     institution that receives a grant under this part may not use 
     more than 2 percent of the grant funds for purposes of 
     administering the grant.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this part.

     ``SEC. 233. APPROPRIATIONS.

       ``There shall be available to the Secretary, from funds not 
     otherwise appropriated, $50,000,000 for the period beginning 
     with fiscal year 2008 and ending with fiscal year 2012, to 
     carry out this part beginning with academic year 2008-2009, 
     which shall remain available until expended. The authority to 
     carry out this part shall expire at the end of fiscal year 
     2012.''.

            TITLE IV--COLLEGE ACCESS CHALLENGE GRANT PROGRAM

     SEC. 401. COLLEGE ACCESS CHALLENGE GRANTS.

       (a) Challenge Grant Program Established.--
       (1) Program established.--The Secretary shall establish a 
     program to award matching grants to philanthropic 
     organizations to increase the number of eligible students 
     from underserved populations who enter and complete college 
     by providing grants to philanthropic organizations who are 
     members of eligible consortia to carry out the activities of 
     the consortia to achieve this purpose, including--
       (A) providing need-based grants to eligible students;
       (B) providing support to eligible students through school- 
     or institution-based mentoring programs; and
       (C) conducting outreach programs to encourage eligible 
     students to pursue higher education.
       (2) Grant period; renewability.--Grants under this section 
     shall be awarded for one 5-year period, and may not be 
     renewed.
       (3) Grant amounts.--
       (A) In general.--A grant awarded under this part for a 
     given fiscal year to a philanthropic organization shall be in 
     an amount equal to lesser of--
       (i) 200 percent of the amount of charitable gifts received 
     in the preceding fiscal year by the eligible consortia, 
     including charitable gifts received by the individual members 
     of the consortia; or
       (ii) the maximum grant amount established by the Secretary 
     by regulation, pursuant to subsection (f).
       (B) Gifts provided in cash or in-kind.--For the purposes of 
     subparagraph (A), the charitable gifts received by an 
     eligible consortia and its members may be provided in cash or 
     in-kind, including physical non-cash contributions of 
     monetary value such as property, facilities, and equipment, 
     but excluding services.
       (b) Uses of Grant.--
       (1) In general.--A philanthropic organization receiving a 
     grant under this section shall--
       (A) provide grants to eligible students; and
       (B) distribute grants to members of the consortia with 
     which the philanthropic organization is affiliated, in 
     accordance with the plan described in subsection (c)(2)(A), 
     to fund the activities of such consortia in accordance with 
     the application under subsection (c).
       (2) Limitation.--Not more than 15 percent of the funds made 
     available annually through a grant under this section may be 
     used for administrative purposes.
       (c) Applications.--A philanthropic organization desiring 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. Such application 
     shall include the following:
       (1) A description of an eligible consortia that meets the 
     requirements of subsection (d), with which the philanthropic 
     organization is affiliated, in accordance with subsection 
     (g).
       (2) A detailed description of--
       (A) the philanthropic organization's plans for distributing 
     the matching grant funds among the members of the eligible 
     consortia; and
       (B) the eligible consortia's plans for using the matching 
     grant funds, including how the funds will be used to provide 
     financial aid, mentoring, and outreach programs to eligible 
     students.
       (3) A plan to ensure the viability of the eligible 
     consortia and the work of the consortia beyond the grant 
     period.
       (4) A detailed description of the activities that carry out 
     this section that are conducted by the eligible consortia at 
     the time of the application, and how the matching grant funds 
     will assist the eligible consortia with expanding and 
     enhancing such activities.
       (5) A description of the organizational structure that will 
     be used to administer the activities carried out under the 
     plan, including a description of the system used to track the 
     participation of students who receive grants to degree 
     completion.
       (6) A description of the strategies that will be used to 
     identify eligible students who are enrolled in secondary 
     school and who may benefit from the activities of the 
     eligible consortia.
       (d) Eligible Consortia.--An eligible consortia with which a 
     philanthropic organization is affiliated for the program 
     under this section shall--
       (1) be a partnership of mulitple entities that have agreed 
     to work together carry out this section, including--
       (A) such philanthropic organization, which shall serve as 
     the manager of the consortia;
       (B) a State that demonstrates a commitment to ensuring the 
     creation of a Statewide system to address the issues of early 
     intervention and financial support for eligible students to 
     enter and remain in college; and
       (C) at the discretion of the philanthropic organization 
     described in subparagraph (A), additional partners, including 
     other non-profit organizations, government entities 
     (including local municipalities, school districts, cities, 
     and counties), institutions of

[[Page 18498]]

     higher education, and other public or private programs that 
     provide mentoring or outreach programs; and
       (2) conducts activites to assist eligible students with 
     entering and remaining in college, which include--
       (A) providing need-based grants to eligible students;
       (B) providing early notification to low-income students of 
     their potential eligibility for Federal financial aid, as 
     well as financial aid and other support available from the 
     eligible consortia;
       (C) encouraging increased eligible student participation in 
     higher education through mentoring or outreach programs; and
       (D) conducting marketing and outreach efforts that are 
     designed to--
       (i) encourage full participation of eligible students in 
     the activities of the consortia that carry out the purposes 
     of this section; and
       (ii) provide the communities impacted by the activities of 
     the consortia with a general knowledge about the efforts of 
     the consortia.
       (e) Annual Report.--A philanthropic organization receiving 
     a grant under this section shall prepare and submit an annual 
     report to the Secretary on the activities carried out with 
     such grant. The report shall include--
       (1) each activity that was provided to eligible students 
     over the course of the year;
       (2) the cost of providing each such activity;
       (3) the number and percentage of eligible students who 
     received grants, mentoring, and outreach services; and
       (4) the total amount of charitable gifts received by the 
     eligible consortia (including its members) with which the 
     philanthropic organization is affiliated for the fiscal year.
       (f) Regulations.--The Secretary shall promulgate 
     regulations to carry out this section. Such regulations shall 
     include--
       (1) the maximum grant amount that may be awarded to a 
     philanthropic organization under this section;
       (2) the minimum amount of chartable gifts an eligible 
     consortia (including its members) shall receive in a fiscal 
     year for the philanthropic organization affiliated with such 
     consortia to be eligible for a grant under this section.
       (g) Definitions.--For the purposes of this section:
       (1) Eligible student.--The term ``eligible student'' means 
     an individual who--
       (A) is a member of an underserved population;
       (B) is enrolled--
       (i) in a secondary school pursuing a high school diploma; 
     or
       (ii) in an institution of higher education or is planning 
     to attend an institution of higher education; and
       (C) either--
       (i) is receiving, or has received, financial assistance or 
     support services from the consortium; or
       (ii) meets 2 or more 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 need-based 
     undergraduate award.
       (IV) Is participating in, or has participated in, a 
     Federal, State, institutional, or community mentoring or 
     outreach program, as recognized by the eligible consortia 
     carrying out activities under this section.

       (2) Philanthropic organization.--The term ``philanthropic 
     organization'' means a non-profit organization--
       (A) that does not receive funds under title IV of the 
     Higher Education Act of 1965 or under the Elementary and 
     Secondary Education Act of 1965;
       (B) that is not a local educational agency or an insitution 
     of higher education;
       (C) that has a demonstrated record of dispersing grant aid 
     to underserved populations to ensure access to, and 
     participation in, higher education;
       (D) that is affiliated with an eligible consortia (as 
     defined in subsection (e)) to carry out this section; and
       (E) the primary purpose of which is to provide financial 
     aid and support services to students from underrepresented 
     populations to increase the number of such students who enter 
     and remain in college.
       (3) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     Puerto Rico.
       (4) Underserved population.--The term ``underserved 
     population'' means a group of individuals who traditionally 
     have not been well represented in the general population of 
     students who pursue and successfully complete a higher 
     education degree.
       (h) Program Funding.--
       (1) In general.--There shall be available to the Secretary 
     to carry out this section, from funds not otherwise 
     appropriated, $300,000,000 for the period beginning with 
     fiscal year 2008 and ending with fiscal year 2012.
       (2) Use of excess funds.--If, at the end of a fiscal year, 
     the funds available for awarding grants under this section 
     exceed the amount necessary to make such grants, then all of 
     the excess funds shall remain available for the subsequent 
     fiscal year, and shall be used to award grants under section 
     401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) for 
     such subsequent fiscal year.
       (i) Sunset.--The authority to carry out this section shall 
     expire at the end of fiscal year 2012.

  The SPEAKER pro tempore (Mr. Cardoza). Pursuant to House Resolution 
531, the amendment in the nature of a substitute printed in the bill, 
modified by the amendment printed in part A of the House Report 110-
224, is adopted and the bill, as amended, is considered as read.
  The text of the bill, as amended, is as follows:

                               H.R. 2669

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

     SECTION 1. SHORT TITLE.

       (a) Short Title.--This Act may be cited to as the ``College 
     Cost Reduction Act of 2007''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.

                   TITLE I--INVESTING IN STUDENT AID

         Part A--Increasing the Purchasing Power of Pell Grants

Sec. 101. Mandatory Pell Grant Increases.
Sec. 102. Support for working students.
Sec. 103. Simplified needs test and automatic zero improvements.
Sec. 104. Definitions.

              Part B--Making Student Loans More Affordable

Sec. 111. Interest rate reductions.
Sec. 112. Increases in loan limits.
Sec. 113. Reduction of lender special allowance payments.
Sec. 114. Elimination of exceptional performer status for lenders.
Sec. 115. Reduction of lender insurance percentage.
Sec. 116. Guaranty agency collection retention.
Sec. 117. Account maintenance fees.
Sec. 118. Increased loan fees from lenders.
Sec. 119. Student loan information.
Sec. 120. Market-based determination of lender returns.

                 Part C--Rewarding Service in Repayment

Sec. 131. Loan forgiveness for service in areas of national need.
``Sec. 428K. Loan forgiveness for service in areas of national need.
Sec. 132. Income-contingent repayment for public sector employees.
Sec. 133. Income-based repayment.
``Sec. 493C. Income-based repayment.
Sec. 134. Definition of economic hardship.
Sec. 135. Deferrals.
Sec. 136. Maximum repayment period.
Sec. 137. Deferral of loan repayment following active duty.
``Sec. 484C. Deferral of loan repayment following active duty.
Sec. 138. Sense of the Congress; report.

              Part D--Sustaining the Perkins Loan Program

Sec. 141. Federal Perkins Loans.

                 TITLE II--REDUCING THE COST OF COLLEGE

Sec. 201. State commitment to affordable college education.
``Sec. 132. State commitment to affordable college education.
Sec. 202. Consumer information and public accountability in higher 
              education.
``Sec. 131. Consumer information and public accountability in higher 
              education.
Sec. 203. Incentives and rewards for low tuition.
``Sec. 401B. Incentives and rewards for low tuition.
Sec. 204. Cooperative education rewards for institutions that restrain 
              tuition increases.

   ``TITLE VIII--COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT 
                       RESTRAIN TUITION INCREASES

``Sec. 801. Definition of cooperative education.
``Sec. 802. Authorization of appropriations; reservations.
``Sec. 803. Grants for cooperative education.
``Sec. 804. Demonstration and innovation projects; training and 
              resource centers; and research.

   TITLE III--ENSURING A HIGHLY QUALIFIED TEACHER IN EVERY CLASSROOM

                          Part A--TEACH Grants

Sec. 301. TEACH Grants.


                        ``Subpart 9--TEACH Grants

``Sec. 420L. Program established.
``Sec. 420M. Eligibility; applications.
``Sec. 420N. Definitions.
``Sec. 420O. Program period and funding.

                     Part B--Centers of Excellence

Sec. 311. Centers of excellence.

                    ``Part C--Centers of Excellence

``Sec. 231. Definitions.
``Sec. 232. Centers of excellence.
``Sec. 233. Appropriations.

[[Page 18499]]

         TITLE IV--LEVERAGING FUNDS TO INCREASE COLLEGE ACCESS

Part A--Strengthening Historically Black Colleges and Universities and 
                     Minority-Serving Institutions

Sec. 401. Investment in Historically Black Colleges and Universities 
              and Minority-Serving Institution.

 ``Part I--Strengthening Historically Black Colleges and Universities 
                and Other Minority-Serving Institutions

``Sec. 499A. Investment in Historically Black Colleges and Universities 
              and Other Minority-Serving Institution.

                Part B--College Access Challenge Grants

Sec. 411. College Access Challenge grants.

                          Part C--Upward Bound

Sec. 412. Upward Bound.

                     TITLE V--ADDITIONAL PROVISIONS

Sec. 501. Independent evaluation of distance education programs.
Sec. 502. Encouraging colleges and universities to ``go green''.

     SEC. 2. REFERENCES; EFFECTIVE DATE.

       (a) 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.).
       (b) Effective Date.--Except as otherwise expressly provided 
     therein, the amendments made by this Act shall be effective 
     on October 1, 2007.

                   TITLE I--INVESTING IN STUDENT AID

         PART A--INCREASING THE PURCHASING POWER OF PELL GRANTS

     SEC. 101. MANDATORY PELL GRANT INCREASES.

       (a) Extension of Authority.--Section 401(a) (20 U.S.C. 
     1070a(a)) is amended by striking ``fiscal year 2004'' and 
     inserting ``fiscal year 2013''.
       (b) Funding for Increases.--Section 401(b) (20 U.S.C. 
     1070a(b)) is amended by adding at the end the following new 
     paragraph:
       ``(9) Additional funds.--
       ``(A) In general.--There are authorized to be appropriated, 
     and there are appropriated, to carry out subparagraph (B) of 
     this paragraph (in addition to any other amounts appropriated 
     to carry out this section and out of any money in the 
     Treasury not otherwise appropriated) the following amounts:
       ``(i) $840,000,000 for fiscal year 2008;
       ``(ii) $870,000,000 for fiscal year 2009;
       ``(iii) $1,340,000,000 for fiscal year 2010;
       ``(iv) $2,280,000,000 for fiscal year 2011;
       ``(v) $2,350,000,000 for fiscal year 2012;
       ``(vi) $2,400,000,000 for fiscal year 2013;
       ``(vii) $2,450,000,000 for fiscal year 2014;
       ``(viii) $2,510,000,000 for fiscal year 2015;
       ``(ix) $2,550,000,000 for fiscal year 2016; and
       ``(x) $2,570,000,000 for fiscal year 2017.
       ``(B) Increase in federal pell grants.--The amounts made 
     available pursuant to subparagraph (A) of this paragraph 
     shall be used to increase the amount of the maximum Pell 
     Grant for which a student shall be eligible during an award 
     year, as specified in the last enacted appropriation Act 
     applicable to that award year, by--
       ``(i) $200 for each of the award years 2008-2009 and 2009-
     2010;
       ``(ii) $300 for award year 2010-2011; and
       ``(iii) $500 for award year 2011-2012 and each subsequent 
     award year.
       ``(C) Use of fiscal year funds for award years.--The 
     amounts made available by subparagraph (A) for any fiscal 
     year shall be available and remain available for use under 
     subparagraph (B) for the award year that begins in such 
     fiscal year.''.
       (c)  Authorized Maximums.--Section 401(b)(2)(A) (20 U.S.C. 
     1070a(b)(2)(A)) is amended to read as follows:
       ``(2)(A) The amount of the Federal Pell Grant for a student 
     eligible under this part shall be--
       ``(i) $7,600 for academic year 2008-2009;
       ``(ii) $8,600 for academic year 2009-2010;
       ``(iii) $9,600 for academic year 2010-2011;
       ``(iv) $10,600 for academic year 2011-2012; and
       ``(v) $11,600 for academic year 2012-2013,
     less an amount equal to the amount determined to be the 
     expected family contribution with respect to that student for 
     that year.''.
       (d) Tuition Sensitivity.--
       (1) Amendment.--Section 401(b) (20 U.S.C. 1070a(b)) is 
     further amended--
       (A) by striking paragraph (3); and
       (B) by redesignating paragraphs (4) through (9) as 
     paragraphs (3) through (8), respectively.
       (2) Effective date.--The amendments made by paragraph (1) 
     of this subsection are effective on the date of enactment of 
     this Act.
         (3) Appropriation.--There shall be available to the 
     Secretary, from funds not otherwise appropriated, $5,000,000 
     for the period beginning on the date of enactment of this Act 
     and ending on October 1, 2008, to carry out the amendments 
     made by paragraph (1) of this subsection.
       (e) Multiple Grants.--
       (1) Amendment.--Paragraph (5) of section 401(b) (as 
     redesignated by subsection (d)(1)(B)) is amended to read as 
     follows:
       ``(5) Year-round pell grants.--The Secretary is authorized, 
     for students enrolled in a baccalaureate degree, associate's 
     degree, or certificate program of study at an eligible 
     institution, to award such students not more than two Pell 
     grants during an award year to permit such students to 
     accelerate progress toward their degree or certificate 
     objectives by enrolling in courses for more than 2 semesters, 
     or 3 quarters, or the equivalent, in a given academic 
     year.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective July 1, 2009.
       (f) Academic Competitiveness Grants.--Section 401A (as 
     amended by section 8003 of Public Law 109-171) is amended--
       (1) in subsection (c)(3)(A)(ii), by inserting ``, except as 
     part of a secondary school program of study'' before the 
     semicolon;
       (2) by redesignating subsection (g) as subsection (h); and
       (3) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Determination of Academic Year.--Notwithstanding 
     section 481(a)(2), for the purpose of determining eligibility 
     for a grant under this section, a student shall be considered 
     to be enrolled or accepted for enrollment in the first, 
     second, third, or fourth academic year of a program of 
     undergraduate education based on the student's class 
     standing, as determined by the institution of higher 
     education at which the student is enrolled or accepted for 
     enrollment.''.
       (g) Eligibility for Academic Competitiveness Grants.--
     Section 401A is further amended--
       (1) in subsection (c)--
       (A) by striking ``full-time''; and
       (B) by amending paragraph (1) to read as follows:
       ``(1) is an eligible student under section 484, including 
     being enrolled or accepted for enrollment in a degree, 
     certificate, or other eligible program leading to a 
     recognized educational credential at an institution of higher 
     education;''; and
       (2) in subsection (d), by adding at the end the following 
     new paragraph:
       ``(3) Adjustment for less than full-time enrollment.--A 
     grant awarded under this section to an eligible student who 
     attends an eligible institution on a less than full-time (but 
     at least half-time or more) basis shall be reduced in the 
     same proportion as would a Federal Pell Grant pursuant to 
     section 401(b)(2)(B).''.

     SEC. 102. SUPPORT FOR WORKING STUDENTS.

       (a) Dependent Students.--Subparagraph (D) of section 
     475(g)(2) (20 U.S.C. 1087oo)(g)(2)(D)) is amended to read as 
     follows:
         ``(D) an income protection allowance of $3,750 (or a 
     successor amount prescribed by the Secretary under section 
     478);''.
       (b) Independent Students Without Dependents Other Than a 
     Spouse.--Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 
     1087pp(b)(1)(A)(iv)) is amended to read as follows:
         ``(iv) an income protection allowance of the following 
     amount (or a successor amount prescribed by the Secretary 
     under section 478)--

         ``(I) for single or separated students, or married 
     students where both are enrolled pursuant to subsection 
     (a)(2), $6,690; and
         ``(II) for married students where 1 is enrolled pursuant 
     to subsection (a)(2), $10,720;''.

       (c) Updated Tables and Amounts.--Section 478(b) (20 U.S.C. 
     1087rr(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``Revised tables.--For each'' and inserting 
     ``Revised tables.--
       ``(A) In general.--For each'';
       (B) in subparagraph (A) (as designated by subparagraph 
     (A)), in the third sentence--
       (i) by striking ``preceding sentence'' and inserting 
     ``subparagraph (A)''; and
       (ii) by striking ``For the 2007-2008'' and inserting the 
     following:
       ``(B) Special rule for 2007-2008 academic year.--For the 
     2007-2008''; and
       (C) by adding at the end the following:
       ``(C) Special rule for 2009-2010 through 2012-2013 academic 
     years.--For the 2009-2010 academic year, and for each of the 
     3 succeeding academic years, the Secretary shall revise the 
     tables in accordance with this paragraph, except that, for 
     the table in section 477(b)(4), the Secretary shall revise 
     such table by increasing the amounts contained in such table 
     for the preceding academic year by 10 percent.''; and
       (2) in paragraph (2), by striking ``shall be developed'' 
     and all that follows through the period at the end and 
     inserting ``shall be developed--
       ``(A) for academic year 2008-2009, by increasing each of 
     the dollar amounts contained in such section as such section 
     was in effect on the day before the date of enactment of the 
     College Cost Reduction Act of 2007 by a percentage equal to 
     the estimated percentage increase in the Consumer Price Index 
     (as defined in section 478(f)) between December 2006 and the 
     December next preceding the beginning of such academic year, 
     and rounding the result to the nearest $10;
         ``(B) for each of the academic years 2010-2011 and 2011-
     2012, by increasing each of the amounts determined under this 
     paragraph for the preceding academic year by 10 percent; and
       ``(C) for each academic year after 2012-2013, by increasing 
     each of the dollar amounts determined under this paragraph 
     for academic year 2012-2013 by a percentage equal to the 
     estimated percentage increase in the Consumer Price Index (as 
     defined in section 478(f)) between December 2011 and the 
     December next preceding the beginning of such academic year, 
     and rounding the result to the nearest $10.''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on July 1, 2009, and the amendment 
     made by subsection (c) shall take effect on July 1, 2008.

     SEC. 103. SIMPLIFIED NEEDS TEST AND AUTOMATIC ZERO 
                   IMPROVEMENTS.

       (a) Simplified Needs Test.--Section 479 (20 U.S.C. 1087ss) 
     is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(A)(i)--
       (i) in subclause (II), by striking ``or'' after the 
     semicolon;
       (ii) by redesignating subclause (III) as subclause (IV);

[[Page 18500]]

       (iii) by inserting after subclause (II) the following:

       ``(III) 1 of whom is a dislocated worker; or''; and

       (iv) in subclause (IV) (as redesignated by clause (ii)), by 
     striking ``12-month'' and inserting ``24-month''; and
       (B) in paragraph (1)(B)(i)--
       (i) in subclause (II), by striking ``or'' after the 
     semicolon;
       (ii) by redesignating subclause (III) as subclause (IV);
       (iii) by inserting after subclause (II) the following:

       ``(III) 1 of whom is a dislocated worker; or''; and

       (iv) in subclause (IV) (as redesignated by clause (ii)), by 
     striking ``12-month'' and inserting ``24-month'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) in clause (ii), by striking ``or'' after the semicolon;
       (II) by redesignating clause (iii) as clause (iv);
       (III) by inserting after clause (ii) the following:

       ``(iii) 1 of whom is a dislocated worker; or''; and

       (IV) in clause (iv) (as redesignated by subclause (II)), by 
     striking ``12-month'' and inserting ``24-month''; and

       (ii) in subparagraph (B), by striking ``$20,000'' and 
     inserting ``$30,000''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) in clause (ii), by striking ``or'' after the semicolon;
       (II) by redesignating clause (iii) as clause (iv);
       (III) by inserting after clause (ii) the following:

       ``(iii) is a dislocated worker; or''; and

       (IV) in clause (iv) (as redesignated by subclause (II)), by 
     striking ``12-month'' and inserting ``24-month''; and

       (ii) in subparagraph (B), by striking ``$20,000'' and 
     inserting ``$30,000''; and
       (C) in the flush matter following paragraph (2)(B), by 
     adding at the end the following: ``The Secretary shall 
     annually adjust the income level necessary to qualify an 
     applicant for the zero expected family contribution. The 
     income level shall be adjusted according to increases in the 
     Consumer Price Index, as defined in section 478(f).''; and
       (3) in subsection (d)--
       (A) by redesignating paragraphs (1) through (6) as 
     subparagraphs (A) through (F), respectively and moving the 
     margins of such subparagraphs 2 ems to the right;
       (B) by striking ``(d) Definition'' and all that follows 
     through ``the term'' and inserting the following:
       ``(d) Definitions.--In this section:
       ``(1) Dislocated worker.--The term `dislocated worker' has 
     the meaning given the term in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801).
       ``(2) Means-tested federal benefit program.--The term''.
       (b) Discretion of Student Financial Aid Administrators.--
     Section 479A(a) (20 U.S.C. 1087tt(a)) is amended in the third 
     sentence by inserting ``a family member who is a dislocated 
     worker (as defined in section 101 of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2801)),'' after ``recent unemployment 
     of a family member,''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective on July 1, 2009.

     SEC. 104. DEFINITIONS.

       (a) Total Income.--Section 480(a)(2) (20 U.S.C. 
     1087vv(a)(2)) is amended--
       (1) by striking ``and no portion'' and inserting ``no 
     portion''; and
       (2) by inserting ``and no distribution from any qualified 
     education benefit described in subsection (f)(3) that is not 
     subject to Federal income tax,'' after ``1986,''.
       (b) Untaxed Income and Benefits.--Section 480(b) (20 U.S.C. 
     1087vv(b)) is amended to read as follows:
       ``(b) Untaxed Income and Benefits.--
       ``(1) The term `untaxed income and benefits' means--
       ``(A) child support received;
       ``(B) workman's compensation;
       ``(C) veteran's benefits such as death pension, dependency, 
     and indemnity compensation, but excluding veterans' education 
     benefits as defined in subsection (c);
       ``(D) interest on tax-free bonds;
       ``(E) housing, food, and other allowances (excluding rent 
     subsidies for low-income housing) for military, clergy, and 
     others (including cash payments and cash value of benefits);
       ``(F) cash support or any money paid on the student`s 
     behalf, except, for dependent students, funds provided by the 
     student's parents;
       ``(G) untaxed portion of pensions;
       ``(H) payments to individual retirement accounts and Keogh 
     accounts excluded from income for Federal income tax 
     purposes; and
       ``(I) any other untaxed income and benefits, such as Black 
     Lung Benefits, Refugee Assistance, railroad retirement 
     benefits, or Job Training Partnership Act noneducational 
     benefits or benefits received through participation in 
     employment and training activities under title I of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).
       ``(2) The term `untaxed income and benefits' shall not 
     include the amount of additional child tax credit claimed for 
     Federal income tax purposes.''.
       (c) Assets.--Section 480(f) (20 U.S.C. 1087vv(f)) is 
     amended--
       (1) in paragraph (3), by striking ``shall not be considered 
     an asset of a student for purposes of section 475'' and 
     inserting ``shall be considered an asset of the parent for 
     purposes of section 475'';
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (3) by inserting after paragraph (3) the following:
       ``(4) A qualified education benefit shall be considered an 
     asset of the student for purposes of section 476 and 477.''.
       (d) Other Financial Assistance.--Section 480(j)(2) (20 
     U.S.C. 1087vv(j)(2)) is amended by inserting ``, or a 
     distribution that is not includable in gross income under 
     section 529 of such Code, under another prepaid tuition plan 
     offered by a State, or under a Coverdell education savings 
     account under section 530 of such Code,'' after ``1986''.
       (e) Effective Date.--The amendments made by this section 
     shall be effective on July 1, 2009.

              PART B--MAKING STUDENT LOANS MORE AFFORDABLE

     SEC. 111. INTEREST RATE REDUCTIONS.

       (a) FFEL Interest Rates.--
       (1) Section 427A(l) (20 U.S.C. 1077a(l)) is amended by 
     adding at the end the following new paragraph:
       ``(4) Reduced rates for undergraduate subsidized loans.--
     Notwithstanding subsection (h) and paragraph (1) of this 
     subsection, with respect to any loan to an undergraduate 
     student made, insured, or guaranteed under this part (other 
     than a loan made pursuant to section 428B, 428C, or 428H) for 
     which the first disbursement is made on or after July 1, 
     2006, and before July 1, 2013, the applicable rate of 
     interest shall be as follows:
       ``(A) For a loan for which the first disbursement is made 
     on or after July 1, 2006, and before July 1, 2008, 6.80 
     percent on the unpaid principal balance of the loan.
       ``(B) For a loan for which the first disbursement is made 
     on or after July 1, 2008, and before July 1, 2009, 6.12 
     percent on the unpaid principal balance of the loan.
       ``(C) For a loan for which the first disbursement is made 
     on or after July 1, 2009, and before July 1, 2010, 5.44 
     percent on the unpaid principal balance of the loan.
       ``(D) For a loan for which the first disbursement is made 
     on or after July 1, 2010, and before July 1, 2011, 4.76 
     percent on the unpaid principal balance of the loan.
       ``(E) For a loan for which the first disbursement is made 
     on or after July 1, 2011, and before July 1, 2012, 4.08 
     percent on the unpaid principal balance of the loan.
       ``(F) For a loan for which the first disbursement is made 
     on or after July 1, 2012 and before July 1, 2013, 3.40 
     percent on the unpaid principal balance of the loan.''.
       (2) Special allowance cross reference.--Section 
     438(b)(2)(I)(ii)(II) (20 U.S.C. 1086(b)(2)(I)(ii)(II)) is 
     amended by striking ``section 427A(l)(1)'' and inserting 
     ``section 427A(l)(1) or (l)(4)''.
       (b) Direct Loan Interest Rates.--Section 455(b)(7) (20 
     U.S.C. 1087e(b)(7)) is amended by adding at the end the 
     following new subparagraph:
       ``(D) Reduced rates for undergraduate fdsl.--
     Notwithstanding the preceding paragraphs of this subsection, 
     for Federal Direct Stafford Loans made to undergraduate 
     students for which the first disbursement is made on or after 
     July 1, 2006, and before July 1, 2013, the applicable rate of 
     interest shall be as follows:
       ``(i) For a loan for which the first disbursement is made 
     on or after July 1, 2006, and before July 1, 2008, 6.80 
     percent on the unpaid principal balance of the loan.
       ``(ii) For a loan for which the first disbursement is made 
     on or after July 1, 2008, and before July 1, 2009, 6.12 
     percent on the unpaid principal balance of the loan.
       ``(iii) For a loan for which the first disbursement is made 
     on or after July 1, 2009, and before July 1, 2010, 5.44 
     percent on the unpaid principal balance of the loan.
       ``(iv) For a loan for which the first disbursement is made 
     on or after July 1, 2010, and before July 1, 2011, 4.76 
     percent on the unpaid principal balance of the loan.
       ``(v) For a loan for which the first disbursement is made 
     on or after July 1, 2011, and before July 1, 2012, 4.08 
     percent on the unpaid principal balance of the loan.
       ``(vi) For a loan for which the first disbursement is made 
     on or after July 1, 2012, and before July 1, 2013, 3.40 
     percent on the unpaid principal balance of the loan.''.

     SEC. 112. INCREASES IN LOAN LIMITS.

       (a) Increase in Third and Subsequent Year Limits.--
       (1) Federal insurance limits.--Section 425(a)(1)(A)(iii) 
     (20 U.S.C. 1075(a)(1)(A)(iii)) is amended by striking 
     ``$5,500'' and inserting ``$7,500''.
       (2) Guaranty limits.--Section 428(b)(1)(A)(iii)(I) (20 
     U.S.C. 1078(b)(1)(A)(iii)(I)) is amended by striking 
     ``$5,500'' and inserting ``$7,500''.
       (b) Increase in Aggregate Limits.--
       (1) Federal insurance limits.--Section 425(a)(2)(A) (20 
     U.S.C. 1075(a)(2)(A)(i)) is amended--
       (A) in clause (i), by striking ``$23,000'' and inserting 
     ``$30,500''; and
       (B) in clause (ii), by striking ``$65,500'' and inserting 
     ``$73,000''.
       (2) Guaranty limits.--Section 428(b)(1)(B) (20 U.S.C. 
     1078(b)(1)(A)(iii)(I)) is amended--
       (A) in clause (i), by striking ``$23,000'' and inserting 
     ``$30,500''; and
       (B) in clause (ii), by striking ``$65,500'' and inserting 
     ``$73,000''.

[[Page 18501]]

       (c) Effective Date.--The amendments made by this section 
     shall be effective July 1, 2008.

     SEC. 113. REDUCTION OF LENDER SPECIAL ALLOWANCE PAYMENTS.

       Section 438(b)(2)(I) (20 U.S.C. 1087-1(b)(2)(I)) is 
     amended--
       (1) in clause (i), by striking ``clauses (ii), (iii), and 
     (iv)'' and inserting ``the following clauses'';
       (2) in clause (v)(III), by striking ``clauses (ii), (iii), 
     and (iv)'' and inserting ``clauses (ii), (iii), (iv), and 
     (vi)''; and
       (3) by adding at the end the following new clause:
       ``(vi) Reduction for loans on or after october 1, 2007.--
     With respect to a loan on which the applicable interest rate 
     is determined under section 427A(l), the percentage to be 
     added under clause (i)(III) in computing the special 
     allowance payment pursuant to this subparagraph shall be the 
     following:

       ``(I) In general and plus loans.--1.79 percent in the case 
     of a loan described in clause (i) or (iii) for which the 
     first disbursement of principal is made on or after October 
     1, 2007.
       ``(II) In school and grace period.--1.19 percent in the 
     case of a loan described in clause (ii)(II) for which the 
     first disbursement of principal is made on or after October 
     1, 2007.
       ``(III) Consolidation loans.--2.09 percent in the case of a 
     loan described in clause (iv) made on or after October 1, 
     2007.''.

     SEC. 114. ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR 
                   LENDERS.

       (a) Elimination of Status.--Part B of title IV (20 U.S.C. 
     1071 et seq.) is amended by striking section 428I (20 U.S.C. 
     1078-9).
       (b) Conforming Amendments.--Part B of title IV is further 
     amended--
       (1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))--
       (A) by striking subparagraph (D); and
       (B) by redesignating subparagraphs (E) through (H) as 
     subparagraphs (D) through (G), respectively; and
       (2) in section 438(b)(5) (20 U.S.C. 1087-1(b)(5)), by 
     striking the matter following subparagraph (B).

     SEC. 115. REDUCTION OF LENDER INSURANCE PERCENTAGE.

       (a) Amendment.--Subparagraph (G) of section 428(b)(1) (20 
     U.S.C. 1078(b)(1)(G)) is amended to read as follows:
       ``(G) insures 95 percent of the unpaid principal of loans 
     insured under the program, except that--
       ``(i) such program shall insure 100 percent of the unpaid 
     principal of loans made with funds advanced pursuant to 
     section 428(j) or 439(q); and
       ``(ii) notwithstanding the preceding provisions of this 
     subparagraph, such program shall insure 100 percent of the 
     unpaid principal amount of exempt claims as defined in 
     subsection (c)(1)(G);''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect with respect to loans made on or after 
     October 1, 2007.

     SEC. 116. GUARANTY AGENCY COLLECTION RETENTION.

       Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 
     1078(c)(6)(A)(ii)) is amended to read as follows:
       ``(ii) an amount equal to 23 percent of such payments for 
     use in accordance with section 422B, except that beginning 
     October 1, 2007, this subparagraph shall be applied by 
     substituting `16 percent' for `23 percent'.''.

     SEC. 117. UNIT COSTS FOR ACCOUNT MAINTENANCE FEES.

       Section 458(b) (20 U.S.C. 1087h(b)) is amended by striking 
     ``0.10 percent'' and inserting ``0.06 percent''.

     SEC. 118. INCREASED LOAN FEES FROM LENDERS.

       Paragraph (2) of section 438(d) (20 U.S.C. 1087-1(d)(2)) is 
     amended to read as follows:
       ``(2) Amount of loan fees.--
       ``(A) Amount.--The amount of the loan fee which shall be 
     deducted under paragraph (1), but which may not be collected 
     from the borrower, shall be equal to--
       ``(i) except as provided in clauses (ii) and (iii), 0.50 
     percent of the principal amount of the loan with respect to 
     any loan under this part for which the first disbursement was 
     made on or after October 1, 1993;
       ``(ii) 1.0 percent of the principal amount of the loan with 
     respect to any loan under this part for which the first 
     disbursement was made on or after October 1, 2007, that is 
     held by any holder other than a holder described in subclause 
     (I) or (II) of clause (iii); and
       ``(iii) 0.0 percent of the principal amount of the loan 
     with respect to any loan under this part for which the first 
     disbursement was made on or after October 1, 2007, that is 
     held by--

       ``(I) any holder that, together with its affiliated 
     holders, is designated by the Secretary annually as a small 
     lender under subparagraph (B); or
       ``(II) any holder that--

       ``(aa) is a unit of a State or local government or a 
     nonprofit private entity; and
       ``(bb) is not owned in whole or in part by, or controlled 
     or operated by a for-profit entity.
       ``(B) Designation of small lenders.--In determining which 
     holders of eligible loans qualify as small lenders for 
     purposes of subparagraph (A)(iii)(I), the Secretary shall, 
     using the most recently available data with respect to the 
     total principal amount of eligible loans held by holders--
       ``(i) rank all holders of eligible loans (combined with 
     their affiliated holders) in descending order by total 
     principal amount of eligible loans held;
       ``(ii) calculate the total principal amount of eligible 
     loans held by all holders; and
       ``(iii) identify the subset of consecutively ranked holders 
     under clause (i), starting with the lowest ranked holder, 
     that together hold a total principal amount of such loans 
     equal to 15 percent of the total amount calculated under 
     clause (ii), but excluding the holder, if any, whose holdings 
     when added cause the total holdings of the subset to equal 
     but not exceed such 15 percent of such total amount 
     calculated; and
       ``(iv) designate as small lenders any holder identified as 
     a member of the subset under clause (iii).''.

     SEC. 119. MARKET-BASED DETERMINATION OF LENDER RETURNS.

       (a) Joint Planning Study To Select Auction Mechanisms for 
     Testing.--
       (1) Planning study.--The Secretaries of Education and 
     Treasury jointly shall conduct a planning study, in 
     consultation with the Office of Management and Budget, the 
     Congressional Budget Office, the General Accounting Office, 
     and other individuals and entities the Secretaries determines 
     appropriate, to--
       (A) examine the matters described in paragraph (2) in order 
     to determine which market-based mechanisms for determining 
     lender returns on loans made, insured, or guaranteed under 
     part B of title IV of the Higher Education Act of 1965 (20 
     U.S.C. 1071 et seq.) shall be tested under the pilot programs 
     described in subsection (c); and
       (B) determine what related administrative and other changes 
     will be required in order to ensure that high-quality 
     services are provided under a successful implementation of 
     market-based determinations of lender returns for all loans 
     made, insured, or guaranteed under such part.
       (2) Matters examined.--The planning study under this 
     subsection shall examine--
       (A) whether it is most appropriate to auction existing 
     loans under part B of title IV of such Act, to auction the 
     rights to originate loans under such part, or whether the 
     sale of securities backed by federally-owned student loan 
     assets originated by banks acting as agents of the Federal 
     Government would provide the most efficient market-based 
     alternative;
       (B) matters related to efficient financial organization of 
     any auctions or sales of loans under such part, including how 
     loans and origination rights are bundled, the capital 
     structure of any securitization plan, and issues related to 
     servicing; and
       (C) how to ensure that statutory, regulatory, and 
     administrative requirements do not impede separate management 
     and ownership of loans or assets backed by loans under part B 
     of title IV of such Act.
       (3) Mechanisms.--In determining which market-based 
     mechanisms are the most promising models to test the pilot 
     programs under subsection (b), the planning study shall take 
     into account whether a particular market-based mechanism 
     will--
       (A) ensure loan availability under part B of title IV of 
     such Act to all eligible students at all participating 
     institutions;
       (B) minimize administrative complexity for borrowers, 
     institutions, lenders, and the Federal Government; and
       (C) reduce Federal costs if used on a program-wide basis.
       (4) Report.--A report on the results of the planning study, 
     together with a plan for implementation of one or more pilot 
     programs using promising market-based approaches for 
     determining lender returns, shall be transmitted to Congress 
     not later than 6 months after the date of enactment of this 
     Act.
       (b) Pilot Programs To Be Tested.--
       (1) Authorization.--
       (A) In general.--Notwithstanding any other provision of 
     law, after the report described in subsection (a)(4) is 
     transmitted to Congress, the Secretary of Education shall, in 
     consultation with the Secretary of the Treasury, begin 
     preparations necessary to carry out pilot programs meeting 
     the requirements of this subsection in accordance with the 
     implementation plan included in such report.
       (B) Implementation date.--The Secretary of Education shall 
     commence implementation of the pilot programs under this 
     subsection not earlier than July 1, 2008.
       (C) Duration and loan volume.--The pilot programs under 
     this subsection shall be not more than two academic years in 
     duration, and the Secretary of Education may use the pilot 
     programs to determining the lender returns for not more 
     than--
       (i) 10 percent of the annual loan volume under part B of 
     title IV of the Higher Education Act of 1965 during the first 
     year of the pilot programs under this subsection; and
       (ii) 20 percent of the annual loan volume under part B of 
     title IV of such Act during the second year of the pilot 
     programs under this subsection.
       (2) Voluntary participation.--
       (A) Participation in any auction-based pilot program under 
     this subsection shall be voluntary for eligible institutions 
     and eligible lenders participating under part B of title IV 
     of such Act prior to July 1, 2006.
       (B) All savings to the United States Treasury generated by 
     such auctions shall be distributed to institutions 
     participating under this subsection on a basis proportionate 
     to loan volume under such part for supplemental, need-based 
     financial aid, except that an institution that is operating 
     as an eligible lender under section 435(d)(2) of such Act 
     shall not be eligible for any such distribution.
       (3) Independent evaluation.--The Government Accountability 
     Office shall conduct an independent evaluation of the pilot 
     programs

[[Page 18502]]

     under this subsection, which evaluation shall be completed, 
     and the results of such submitted to the Secretary of 
     Education, the Secretary of the Treasury, and Congress, not 
     later than 120 days after the termination of such pilot 
     programs.
       (c) Program-Wide Implementation.--Notwithstanding any other 
     provision of part B of title IV of the Higher Education Act 
     of 1965, for the first academic year beginning not less than 
     120 days after the independent evaluation described in 
     subsection (b)(3) has been transmitted to Congress, and 
     succeeding academic years, the Secretary of Education is 
     authorized to implement for all loans made under such part, a 
     program-wide, market-based system to determine returns to all 
     lenders as the Secretary of Education determines appropriate, 
     provided that--
       (1) the Secretary of Education, in consultation with the 
     Secretary of the Treasury, has certified that the auction-
     based system that the Secretary of Education intends to 
     implement on a program-wide basis would--
       (A) ensure loan availability under such part to all 
     eligible students at all participating institutions;
       (B) minimize administrative complexity for borrowers, 
     institutions, lenders, and the Federal Government, including 
     the enhancement of the modernization of the student financial 
     aid system; and
       (C) reduce Federal costs when used on a program-wide basis; 
     and
       (2) the Secretary of Education has notified Congress of the 
     Secretary's intent to implement a program-wide auction based 
     system, and has provided a description of the structure of 
     such auction-based system, at least 120 days before 
     implementing such system.
       (d) Consultation.--
       (1) In general.--As part of the planning study, pilot 
     programs, and program-wide implementation phases described in 
     this section, the Secretary of Education shall consult with 
     representatives of investment banks, ratings agencies, 
     lenders, institutions of higher education, and students, as 
     well as individuals or other entities with pertinent 
     technical expertise. The Secretary of Education shall engage 
     in such consultations using such methods as, and to the 
     extent that, the Secretary determines appropriate to the time 
     constraints associated with the study, programs, and 
     implementation.
       (2) Services of other federal agencies.--In carrying out 
     the planning study and pilot programs described in this 
     section, the Secretary of Education may use, on a 
     reimbursable basis, the services (including procurement 
     authorities and services), equipment, personnel, and 
     facilities of other agencies and instrumentalities of the 
     Federal Government.

     SEC. 120. OTHER GUARANTY AGENCY REFORMS.

       (a) Agency Operating Funds.--Section 422B(c) (20 U.S.C. 
     1072b(c)) is amended--
       (1) by striking ``and'' at the end of paragraph (5);
       (2) by redesignating paragraph (6) as paragraph (7); and
       (3) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) the delinquency prevention fee paid by the Secretary 
     in accordance with section 428(o); and''.
       (b) Delinquency Prevention Fee.--Section 428 (20 U.S.C. 
     1078) is amended by adding at the end the following new 
     subsection:
       ``(o) Delinquency Prevention Fee.--
       ``(1) Amount of fee.--The Secretary shall pay to each 
     guaranty agency, on a monthly basis, a delinquency prevention 
     fee equal to 0.0055 percent of the original principal amount 
     of loans insured by the agency, other than loans in in-school 
     or grace period status, that are not in delinquency status as 
     of the end of the previous month.
       ``(2) Definition.--For the purpose of earning the 
     delinquency prevention fee, the term `not in delinquency 
     status' means the borrower is less than 60 days delinquent in 
     making a required payment.''.
       (c) Minimum Loan Processing and Issuance Fees.--Section 
     428(f)(1)(A)(ii) (20 U.S.C. 1078(f)(1)(A)(ii)) is amended by 
     inserting before the period at the end the following: ``, 
     except that the total amount of such payments to each 
     guaranty agency in any fiscal year shall equal at least 
     $1,500,000''.
       Page 46, line 1, redesignate paragraph (9) as paragraph 
     (10) and insert before such line the following new paragraph:
       ``(9) School counselors.--An individual who is employed as 
     a school counselor (as such term is defined in section 
     5421(e)(3) of Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7245(e)(3)) in an elementary or secondary school 
     which is in the school district of a local educational agency 
     which is eligible in such year for assistance pursuant to 
     title I of the Elementary and Secondary Education Act of 
     1965, and which for the purpose of this paragraph and for 
     that year has been determined by the Secretary (pursuant to 
     regulations and after consultation with the State educational 
     agency of the State in which the school is located) to be a 
     school in which the enrollment of children counted under 
     section 1113(a)(5) of the Elementary and Secondary Education 
     Act of 1965 exceeds 30 percent of the total enrollment of 
     that school.

                 PART C--REWARDING SERVICE IN REPAYMENT

     SEC. 131. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL 
                   NEED.

       Section 428K (20 U.S.C. 1078-11) is amended to read as 
     follows:

     ``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF 
                   NATIONAL NEED.

       ``(a) Program Authorized.--
       ``(1) Loan forgiveness authorized.--The Secretary shall 
     forgive, in accordance with this section, the student loan 
     obligation of a borrower in the amount specified in 
     subsection (c), for any new borrower after the date of 
     enactment of the College Cost Reduction Act of 2007, who--
       ``(A) is employed full-time in an area of national need 
     described in subsection (b); and
       ``(B) is not in default on a loan for which the borrower 
     seeks forgiveness.
       ``(2) Method of loan forgiveness.--To provide loan 
     forgiveness under paragraph (1), the Secretary is authorized 
     to carry out a program--
       ``(A) through the holder of the loan, to assume the 
     obligation to repay a qualified loan amount for a loan made, 
     insured, or guaranteed under this part; and
       ``(B) to cancel a qualified loan amount for a loan made 
     under part D of this title.
       ``(3) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out the 
     provisions of this section.
       ``(b) Areas of National Need.--For purposes of this 
     section, an individual shall be treated as employed in an 
     area of national need if the individual is employed full-time 
     as any of the following:
       ``(1) Early childhood educators.--An individual who is 
     employed as an early childhood educator in an eligible 
     preschool program or eligible early childhood education 
     program in a low-income community, and who is involved 
     directly in the care, development, and education of infants, 
     toddlers, or young children age 5 and under.
       ``(2) Nurses.--An individual who is employed--
       ``(A) as a nurse in a clinical setting; or
       ``(B) as a member of the nursing faculty at an accredited 
     school of nursing (as those terms are defined in section 801 
     of the Public Health Service Act (42 U.S.C. 296)).
       ``(3) Foreign language specialists.--An individual who has 
     obtained a baccalaureate degree in a critical foreign 
     language and is employed--
       ``(A) in an elementary or secondary school as a teacher of 
     a critical foreign language; or
       ``(B) in an agency of the United States Government in a 
     position that regularly requires the use of such critical 
     foreign language.
       ``(4) Librarians.--An individual who is employed as a 
     librarian in--
       ``(A) a public library that serves a geographic area within 
     which the public schools have a combined average of 30 
     percent or more of their total student enrollments composed 
     of children counted under section 1113(a)(5) of the 
     Elementary and Secondary Education Act of 1965; or
       ``(B) an elementary or secondary school which is in the 
     school district of a local educational agency which is 
     eligible in such year for assistance pursuant to title I of 
     the Elementary and Secondary Education Act of 1965, and which 
     for the purpose of this paragraph and for that year has been 
     determined by the Secretary (pursuant to regulations and 
     after consultation with the State educational agency of the 
     State in which the school is located) to be a school in which 
     the enrollment of children counted under section 1113(a)(5) 
     of the Elementary and Secondary Education Act of 1965 exceeds 
     30 percent of the total enrollment of that school.
       ``(5) Highly qualified teachers: bilingual education and 
     low-income communities.--An individual who--
       ``(A) is highly qualified as such term is defined in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965; and
       ``(B)(i) is employed as a full-time teacher of bilingual 
     education; or
       ``(ii) is employed as a teacher in a public or nonprofit 
     private elementary or secondary school which is in the school 
     district of a local educational agency which is eligible in 
     such year for assistance pursuant to title I of the 
     Elementary and Secondary Education Act of 1965, and which for 
     the purpose of this paragraph and for that year has been 
     determined by the Secretary (pursuant to regulations and 
     after consultation with the State educational agency of the 
     State in which the school is located) to be a school in which 
     the enrollment of children counted under section 1113(a)(5) 
     of the Elementary and Secondary Education Act of 1965 exceeds 
     40 percent of the total enrollment of that school.
       ``(6) Child welfare workers.--An individual who--
       ``(A) has obtained a degree in social work or a related 
     field with a focus on serving children and families; and
       ``(B) is employed in public or private child welfare 
     services.
       ``(7) Speech-language pathologists.--An individual who is a 
     speech-language pathologist, who is employed in an eligible 
     preschool program or an elementary or secondary school, and 
     who has, at a minimum, a graduate degree in speech-language 
     pathology, or communication sciences and disorders.
       ``(8) National service.--An individual who is engaged as a 
     participant in a project under the National and Community 
     Service Act of 1990 (as such terms are defined in section 101 
     of such Act (42 U.S.C. 12511)).
       ``(9) Public sector employees.--An individual who is 
     employed in public safety (including as a first responder, 
     firefighter, police officer, or other law enforcement or 
     public safety officer), emergency management (including as an 
     emergency medical technician), public health, or public 
     interest legal services (including prosecution or public 
     ``defense or legal advocacy in low-income communities at a 
     nonprofit organization)''.

[[Page 18503]]

       ``(c) Qualified Loan Amount.--At the end of each school, 
     academic, or calendar year of full-time employment in an area 
     of national need described in subsection (b), not to exceed 5 
     years, the Secretary shall forgive not more than $1,000 of 
     the student loan obligation of a borrower that is outstanding 
     after the completion of each such school, academic, or 
     calendar year of employment, as appropriate, not to exceed 
     $5,000 in the aggregate for any borrower.
       ``(d) Construction.--Nothing in this section shall be 
     construed to authorize the refunding of any repayment of a 
     loan.
       ``(e) Segal Americorps Education Award and National Service 
     Award Recipients.--A student borrower who qualifies for the 
     maximum education award under subtitle D of title I of the 
     National and Community Service Act of 1990 (42 U.S.C. 12601 
     et seq.) shall receive under this section the amount, if any, 
     by which the maximum benefit available under this section 
     exceeds the maximum education award available under such 
     subtitle.
       ``(f) Ineligibility for Double Benefits.--No borrower may 
     receive a reduction of loan obligations under both this 
     section and section 428J or 460.
       ``(g) Definitions.--In this section:
       ``(1) Critical foreign language.--The term `critical 
     foreign language' includes the languages of Arabic, Korean, 
     Japanese, Chinese, Pashto, Persian-Farsi, Serbian-Croatian, 
     Russian, Portuguese, and any other language identified by the 
     Secretary of Education, in consultation with the Defense 
     Language Institute, the Foreign Service Institute, and the 
     National Security Education Program, as a critical foreign 
     language need.
       ``(2) Early childhood educator.--The term `early childhood 
     educator' means an early childhood educator who works 
     directly with children in an eligible preschool program or 
     eligible early childhood education program who has completed 
     a baccalaureate or advanced degree in early childhood 
     development, early childhood education, or in a field related 
     to early childhood education.
       ``(3) Eligible preschool program.--The term `eligible 
     preschool program' means a program that provides for the 
     care, development, and education of infants, toddlers, or 
     young children age 5 and under, meets any applicable State or 
     local government licensing, certification, approval, and 
     registration requirements, and is operated by--
       ``(A) a public or private school that is supported, 
     sponsored, supervised, or administered by a local educational 
     agency;
       ``(B) a Head Start agency serving as a grantee designated 
     under the Head Start Act (42 U.S.C. 9831 et seq.);
       ``(C) a nonprofit or community based organization; or
       ``(D) a child care program, including a home.
       ``(4) Eligible early childhood education program.--The term 
     `eligible early childhood education program' means--
       ``(A) a family child care program, center-based child care 
     program, State prekindergarten program, school program, or 
     other out-of-home early childhood development care program, 
     that--
       ``(i) is licensed or regulated by the State; and
       ``(ii) serves 2 or more unrelated children who are not old 
     enough to attend kindergarten;
       ``(B) a Head Start Program carried out under the Head Start 
     Act (42 U.S.C. 9831 et seq.); or
       ``(C) an Early Head Start Program carried out under section 
     645A of the Head Start Act (42 U.S.C. 9840a).
       ``(5) Low-income community.--In this subsection, the term 
     `low-income community' means a community in which 70 percent 
     of households earn less than 85 percent of the State median 
     household income.
       ``(6) Nurse.--The term `nurse' means a nurse who meets all 
     of the following:
       ``(A) The nurse graduated from--
       ``(i) an accredited school of nursing (as those terms are 
     defined in section 801 of the Public Health Service Act (42 
     U.S.C. 296));
       ``(ii) a nursing center; or
       ``(iii) an academic health center that provides nurse 
     training.
       ``(B) The nurse holds a valid and unrestricted license to 
     practice nursing in the State in which the nurse practices in 
     a clinical setting.
       ``(C) The nurse holds one or more of the following:
       ``(i) A graduate degree in nursing, or an equivalent 
     degree.
       ``(ii) A nursing degree from a collegiate school of nursing 
     (as defined in section 801 of the Public Health Service Act 
     (42 U.S.C. 296)).
       ``(iii) A nursing degree from an associate degree school of 
     nursing (as defined in section 801 of the Public Health 
     Service Act (42 U.S.C. 296)).
       ``(iv) A nursing degree from a diploma school of nursing 
     (as defined in section 801 of the Public Health Service Act 
     (42 U.S.C. 296)).
       ``(7) Speech-language pathologist.--The term `speech-
     language pathologist' means a speech-language pathologist 
     who--
       ``(A) has received, at a minimum, a graduate degree in 
     speech-language pathology or communication sciences and 
     disorders from an institution of higher education accredited 
     by an agency or association recognized by the Secretary 
     pursuant to section 496(a) of this Act; and
       ``(B) provides speech-language pathology services under 
     section 1861(ll)(1) of the Social Security Act (42 U.S.C. 
     1395x(ll)(1), or meets or exceeds the qualifications for a 
     qualified speech-language pathologist under subsection 
     (ll)(3) of such section (42 U.S.C. 1395x(ll)(3)).
       ``(h) Program Funding.--There shall be available to the 
     Secretary to carry out this section, from funds not otherwise 
     appropriated, such sums as may be necessary to provide loan 
     forgiveness in accordance with this section to each eligible 
     individual.''.

     SEC. 132. INCOME-CONTINGENT REPAYMENT FOR PUBLIC SECTOR 
                   EMPLOYEES.

       Section 455(e) (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 or section 428C(b)(5) 
     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), social work in a public child or family service 
     agency, public interest legal services (including prosecution 
     or public ``defense or legal advocacy in low-income 
     communities at a nonprofit organization), or at an 
     organization that is described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 and exempt from taxation under 
     section 501(a) of such Code''.
       ``(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. 133. INCOME-BASED REPAYMENT.

       (a) Amendment.--Part G of title IV (20 U.S.C. 1088 et seq.) 
     is further amended by adding at the end the following:

     ``SEC. 493C. INCOME-BASED REPAYMENT.

       ``(a) Definitions.--In this section:
       ``(1) Excepted plus loan.--The term `excepted PLUS loan' 
     means a loan under section 428B, or a Federal Direct PLUS 
     Loan, that is made, insured, or guaranteed on behalf of a 
     dependent student.
       ``(2) Partial financial hardship.--The term `partial 
     financial hardship', when used with respect to a borrower, 
     means that for such borrower--
       ``(A) the annual amount due on the total amount of loans 
     made, insured, or guaranteed under part B or D (other than an 
     excepted PLUS loan) to a borrower as calculated under the 
     standard repayment plan under section 428(b)(9)(A)(i) or 
     455(d)(1)(A); exceeds
       ``(B) 15 percent of the result obtained by calculating the 
     amount by which--
       ``(i) the borrower's, and the borrower's spouse's (if 
     applicable), adjusted gross income; exceeds
       ``(ii) 150 percent of the poverty line applicable to the 
     borrower's family size as determined under section 673(2) of 
     the Community Services Block Grant Act (42 U.S.C. 9902(2)).
       ``(b) Income-Based Repayment Program Authorized.--
     Notwithstanding any other provision of this Act, the 
     Secretary shall carry out a program under which--
       ``(1) a borrower of any loan made, insured, or guaranteed 
     under part B or D (other than an excepted PLUS loan) who has 
     a partial financial hardship may elect, during any period the 
     borrower has the partial financial hardship, to have the 
     borrower's aggregate monthly payment for all such loans not 
     exceed the result described in subsection (a)(2)(B) divided 
     by 12;
       ``(2) the holder of such a loan shall apply the borrower's 
     monthly payment under this subsection first toward interest 
     due on the loan and then toward the principal of the loan;
       ``(3) any interest due and not paid under paragraph (2) 
     shall be capitalized;
       ``(4) any principal due and not paid under paragraph (2) 
     shall be deferred;
       ``(5) the amount of time the borrower makes monthly 
     payments under paragraph (1) may exceed 10 years;
       ``(6) if the borrower no longer has a partial financial 
     hardship or no longer wishes to continue the election under 
     this subsection, then--
       ``(A) the maximum monthly payment required to be paid for 
     all loans made to the borrower under part B or D (other than 
     an excepted PLUS loan) shall not exceed the monthly amount 
     calculated under section 428(b)(9)(A)(i) or 455(d)(1)(A) when 
     the borrower first made the election described in this 
     subsection; and
       ``(B) the amount of time the borrower is permitted to repay 
     such loans may exceed 10 years;
       ``(7) the Secretary shall repay or cancel any outstanding 
     balance of principal and interest due on all loans made under 
     part B or D (other than a loan under section 428B or a 
     Federal Direct PLUS Loan) to a borrower who--
       ``(A) is in deferment due to an economic hardship described 
     in section 435(o) for a period of time prescribed by the 
     Secretary, not to exceed 20 years; or
       ``(B)(i) makes the election to participate in income-based 
     repayment under paragraph (1); and
       ``(ii) for a period of time prescribed by the Secretary, 
     not to exceed 20 years (including any period during which the 
     borrower is in deferment due to an economic hardship 
     described in section 435(o)), meets 1 or more of the 
     following requirements:
       ``(I) has made reduced monthly payments under paragraph 
     (1);
       ``(II) has made monthly payments of not less than the 
     monthly amount calculated under section 428(b)(9)(A)(i) or 
     455(d)(1)(A) when the borrower first made the election 
     described in this subsection;

[[Page 18504]]

       ``(III) has made payments under a standard repayment plan 
     under section 428(b)(9)(A)(i) or 455(d)(1)(A);
       ``(IV) has made payments under an income-contingent 
     repayment plan under section 455(d)(1)(D); and
       ``(8) a borrower who is repaying a loan made under this 
     part pursuant to income-based repayment may elect, at any 
     time, to terminate repayment pursuant to income-based 
     repayment and repay such loan under the standard repayment 
     plan.''.
       (b) Conforming ICR Amendment.--Section 455(d)(1)(D) (20 
     U.S.C. 1087e(d)(1)(D)) is amended by inserting ``made on 
     behalf of a dependent student'' after ``PLUS loan''.

     SEC. 134. DEFINITION OF ECONOMIC HARDSHIP.

       Section 435(o) (20 U.S.C. 1085(o)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A)(ii)--
       (i) by striking ``100 percent of the poverty line for a 
     family of 2'' and inserting ``150 percent of the poverty line 
     applicable to the borrower's family size''; and
       (ii) by inserting ``or'' after the semicolon;
       (B) by striking subparagraph (B); and
       (C) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (2) in paragraph (2), by striking ``(1)(C)'' and inserting 
     ``(1)(B)''.

     SEC. 135. DEFERRALS.

       (a) FISL.--Section 427(a)(2)(C)(iii) (20 U.S.C. 
     1077(a)(2)(C)(iii)) is amended by striking ``not in excess of 
     3 years''.
       (b) Interest Subsidies.--Section 428(b)(1)(M)(iv) (20 
     U.S.C. 1078(b)(1)(M)(iv)) is amended by striking ``not in 
     excess of 3 years''.
       (c) Direct Loans.--Section 455(f)(2)(D) (20 U.S.C. 
     1087e(f)(2)(D)) is amended by striking ``not in excess of 3 
     years''.
       (d) Perkins.--Section 464(c)(2)(A)(iv) (20 U.S.C. 
     1087dd(c)(2)(A)(iv)) is amended by striking ``not in excess 
     of 3 years''.

     SEC. 136. MAXIMUM REPAYMENT PERIOD.

       (a) In General.--Section 455(e) (20 U.S.C. 1087e(e)) is 
     amended by adding at the end the following:
       ``(9) Maximum repayment period.--In calculating the 
     extended period of time for which an income-contingent 
     repayment plan under this subsection may be in effect for a 
     borrower, the Secretary shall include all time periods during 
     which a borrower of loans under part B, part D, or part E--
       ``(A) is not in default on any loan that is included in the 
     income-contingent repayment plan; and
       ``(B)(i) is in deferment due to an economic hardship 
     described in section 435(o);
       ``(ii) makes monthly payments under paragraph (1) or (6) of 
     section 493C(b); or
       ``(iii) makes payments under a standard repayment plan 
     described in section 428(b)(9)(A)(i) or subsection 
     (d)(1)(A).''.
       (b) Technical Correction.--Section 455(d)(1)(C) (20 U.S.C. 
     1087e(d)(1)(C)) is amended by striking ``428(b)(9)(A)(v)'' 
     and inserting ``428(b)(9)(A)(iv)''.

     SEC. 137. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY.

       Part G of title IV is amended by inserting after section 
     484B (20 U.S.C. 1091b) the following new section:

     ``SEC. 484C. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE 
                   DUTY.

       ``(a) Deferral of Loan Repayment Following Active Duty.--In 
     addition to any deferral of repayment of a loan made under 
     this title pursuant to section 428(b)(1)(M)(iii), 
     455(f)(2)(C), or 464(c)(2)(A)(ii), a borrower of a loan under 
     this title who is a member of the National Guard or other 
     reserve component of the Armed Forces of the United States, 
     or a member of such Armed Forces in a retired status, is 
     called or ordered to active duty, and is currently enrolled, 
     or was enrolled within six months prior to the activation, in 
     a program of instruction at an eligible institution, shall be 
     eligible for a deferment during the 13 months following the 
     conclusion of such service, except that a deferment under 
     this subsection shall expire upon the borrower's return to 
     enrolled student status.
       ``(b) Active Duty.--Notwithstanding section 481(d), in this 
     section, 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--
       ``(1) does not include active duty for training or 
     attendance at a service school; but
       ``(2) includes, in the case of members of the National 
     Guard, active State duty.''.

              PART D--SUSTAINING THE PERKINS LOAN PROGRAM

     SEC. 141. FEDERAL PERKINS LOANS.

       Section 461(b) (20 U.S.C. 1087aa(b)) is amended by adding 
     at the end the following new paragraphs:
       ``(3) In addition to any amounts appropriated pursuant to 
     paragraph (1) or (2) of this subsection, there shall be 
     available to the Secretary for contributions to student loan 
     funds established under part E, from funds not otherwise 
     appropriated, $100,000,000 for each of the fiscal years 2008 
     through 2012. The sum of the amount made available under this 
     subsection for any such fiscal year, plus the amount so 
     appropriated for such fiscal year, shall, for purposes of 
     allocations under section 462, be treated as the amount 
     appropriated pursuant to section 461(b) for such fiscal year.
       ``(4) The authority to make contributions to student loan 
     funds under this part shall expire at the end of fiscal year 
     2012.''.

                 TITLE II--REDUCING THE COST OF COLLEGE

     SEC. 201. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN 
                   HIGHER EDUCATION.

       Section 131 of the Higher Education Act of 1965 (20 U.S.C. 
     1015) is amended to read as follows:

     ``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN 
                   HIGHER EDUCATION.

       ``(a) College Opportunity On-Line (COOL) Website Re-Design 
     Process.--In carrying out this section, the Commissioner of 
     Education Statistics--
       ``(1) shall identify the data elements related to college 
     costs that are of greatest importance to prospective 
     students, enrolled students, and their families, paying 
     particular attention to low-income, non-traditional student 
     populations, and first-generation college students;
       ``(2) shall convene a group of individuals with expertise 
     in the informational needs of prospective college students 
     and parents to--
       ``(A) determine the relevance of particular data elements 
     to prospective students, enrolled students, and families 
     based upon the results of opinion research; and
       ``(B) make recommendations regarding the inclusion of 
     specific data items and the most effective and least 
     burdensome methods of collecting and reporting useful data 
     from institutions of higher education; and
       ``(3) shall ensure that the redesigned COOL website--
       ``(A) uses, to the extent practicable, data elements 
     currently provided by institutions of higher education to the 
     Secretary;
       ``(B) includes clear and uniform information determined to 
     be relevant to prospective students, enrolled students, and 
     families;
       ``(C) provides comparable information, by ensuring that 
     information is based on accepted criteria and common 
     definitions;
       ``(D) includes a sorting function that permits users to 
     customize their search for and comparison of institutions of 
     higher education based on the information identified through 
     the process as prescribed in paragraph (1) as being of 
     greatest relevance to choosing an institution of higher 
     education.
       ``(b) Data Collection.--
       ``(1) Data system.--The Commissioner of Education 
     Statistics shall continue to redesign the relevant parts of 
     the Integrated Postsecondary Education Data System to include 
     additional data as required by this section and to continue 
     to improve the usefulness and timeliness of data collected by 
     such System in order to inform consumers about institutions 
     of higher education.
       ``(2) College consumer profile.--The Secretary shall 
     continue to publish on the COOL website, for each academic 
     year and in accordance with standard definitions developed by 
     the Commissioner of Education Statistics (including 
     definitions developed under section 131(a)(3)(A) as in effect 
     on the day before the date of enactment of the College Cost 
     Reduction Act of 2007), from at least all institutions of 
     higher education participating in programs under title IV the 
     following information:
       ``(A) The tuition and fees charged for a first-time, full-
     time undergraduate student.
       ``(B) The room and board charges for a first-time, full-
     time undergraduate student.
       ``(C) The cost of attendance for a first-time, full-time 
     undergraduate student, consistent with the provisions of 
     section 472.
       ``(D) The average amount of financial assistance (including 
     grant assistance) received by a first-year, full-time 
     undergraduate student.
       ``(E) The number and percentage of first-time, full-time 
     undergraduate students receiving financial assistance 
     (including grant assistance) described in each clause of 
     subparagraph (D).
       ``(F) Student enrollment information, including information 
     on the number and percentage of full-time and part-time 
     students, and the number and percentage of resident and non-
     resident students.
       ``(G) Faculty-to-student ratios.
       ``(H) The total number of faculty and the percentage of 
     faculty who are full-time employees of the institution and 
     the percentage who are part-time.
       ``(I) Graduation rates calculated pursuant to section 
     485(a)(1)(L), including rates disaggregated by gender, by 
     each major racial and ethnic subgroup, and by income status, 
     as measured by receipt of Federal Pell Grants or Federal 
     subsidized student loans.
       ``(J) A link to the institution of higher education with 
     information of interest to students including mission, 
     accreditation, student services (including services for 
     students with disabilities), transfer of credit policies, any 
     articulation agreements entered into by the institution.
       ``(K) The college affordability information elements 
     specified in subsection (d).
       ``(c) Information to the Public.--The Secretary shall work 
     with public and private entities to promote broad public 
     awareness, particularly among middle and high school students 
     and their families, of the information made available under 
     this section, including by distribution to students who 
     participate in or receive benefits from means-tested 
     federally funded education programs and other Federal 
     programs determined by the Secretary.
       ``(d) College Affordability Information Elements.--The 
     college affordability information elements required by 
     subsection (b)(2)(K) shall include, for each institution 
     submitting data--
       ``(1) the sticker price of the institution for the 5 most 
     recent academic years; and
       ``(2) the net tuition of the institution for the most 
     recent academic year for which data are available.

[[Page 18505]]

       ``(e) Outcomes and Actions.--
       ``(1) Response from institution.--Effective on June 30, 
     2011, an institution that increases its sticker price at a 
     percentage rate for any 3-year interval ending on or after 
     that date that exceeds two times the rate of change in the 
     higher education price index over the same time period shall 
     provide a report to the Secretary. Such report shall be 
     published by the Secretary on the COOL website, and shall 
     include--
       ``(A) a description of the factors contributing to the 
     increase in the institution's costs and in the tuition and 
     fees charged to students; and
       ``(B) if determinations of tuition and fee increases are 
     not within the exclusive control of the institution, a 
     description of the agency or instrumentality of State 
     government or other entity that participates in such 
     determinations and the authority exercised by such agency, 
     instrumentality, or entity.
       ``(2) Consequences for 2-year continuation of failure.--If 
     the Secretary determines that an institution that is subject 
     to paragraph (1) has failed to reduce the subsequent increase 
     in sticker price to equal to or below two times the rate of 
     change in the higher education price index for 2 consecutive 
     academic years subsequent to the 3-year interval used under 
     paragraph (1), the Secretary shall place the institution on 
     affordability alert status.
       ``(3) Exemptions.--Notwithstanding paragraph (2), an 
     institution shall not be placed on affordability alert status 
     if, for any 3-year interval for which sticker prices are 
     computed under paragraph (1)--
       ``(A) with respect the class of institutions described in 
     paragraph (5) to which the institution belongs, the sticker 
     price of the institution is in the lowest quartile of 
     institutions within such class, as determined by the 
     Secretary, during the last year of such 3-year interval; or
       ``(B) the institution has a percentage change in its 
     sticker price computed under paragraph (1) that exceeds two 
     times the rate of change in the higher education price index 
     over the same time period, but the dollar amount of the 
     sticker price increase is less than $500.
       ``(4) Information to state agencies.--Any institution that 
     reports under paragraph (1)(B) that an agency or 
     instrumentality of State government or other entity 
     participates in the determinations of tuition and fee 
     increases shall, prior to submitting any information to the 
     Secretary under this subsection, submit such information to, 
     and request the comments and input of, such agency, 
     instrumentality, or entity. With respect to any such 
     institution, the Secretary shall provide a copy of any 
     communication by the Secretary with that institution to such 
     agency, instrumentality, or entity.
       ``(5) Classes of institutions.--For purposes of this 
     subsection, the classes of institutions shall be those 
     sectors used by the Integrated Postsecondary Education Data 
     System, based on whether the institution is public, nonprofit 
     private, or for-profit private, and whether the institution 
     has a 4-year, 2-year, or less than 2-year program of 
     instruction.
       ``(6) Data rejection.--Nothing in this subsection shall be 
     construed as allowing the Secretary to reject the data 
     submitted by an individual institution of higher education.
       ``(f) Fines.--In addition to actions authorized in section 
     487(c), the Secretary may impose a fine in an amount not to 
     exceed $25,000 on an institution of higher education for 
     failing to provide the information required by this section 
     in a timely and accurate manner, or for failing to otherwise 
     cooperate with the National Center for Education Statistics 
     regarding efforts to obtain data under subsection (c) and 
     pursuant to the program participation agreement entered into 
     under section 487.
       ``(g) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out the 
     provisions of this section.
       ``(h) Definitions.--For the purposes of this section:
       ``(1) Net tuition.--The term `net tuition' means the 
     average tuition and fees charged to a full-time undergraduate 
     student by an institution of higher education for any 
     academic year, minus the average grant amount received by 
     such a student for such academic year.
       ``(2) Sticker price.--The term `sticker price' means the 
     average published tuition and fees charged to a first-time, 
     full-time, undergraduate student by an institution of higher 
     education for any academic year.
       ``(3) Higher education price index.--The term `higher 
     education price index' means a statistical measure of change 
     over time in the prices of a fixed market basket of goods and 
     services purchased by colleges and universities through 
     current fund educational and general expenditures (excluding 
     expenditures for research), as developed by the Bureau of 
     Labor Statistics.''.

     SEC. 202. COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT 
                   RESTRAIN TUITION INCREASES.

       The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) 
     is amended by adding at the end the following title:

              ``TITLE VIII--RESTRAINING TUITION INCREASES

                    ``PART A--COOPERATIVE EDUCATION

     ``SEC. 801. DEFINITION OF COOPERATIVE EDUCATION.

       ``For the purpose of this title the term `cooperative 
     education' means the provision of alternating or parallel 
     periods of academic study and public or private employment in 
     order to give students work experiences related to their 
     academic or occupational objectives and an opportunity to 
     earn the funds necessary for continuing and completing their 
     education.

     ``SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.

       ``(a) Appropriations.--There shall be available to the 
     Secretary to carry out this title from funds not otherwise 
     appropriated $15,000,000 for each of the fiscal years 2008 
     through 2012.
       ``(b) Reservations.--Of the amount appropriated for each 
     such fiscal year--
       ``(1) not less than 50 percent shall be available for 
     carrying out grants to institutions of higher education and 
     combinations of such institutions described in section 
     803(a)(1)(A) for cooperative education under section 803;
       ``(2) not less than 25 percent shall be available for 
     carrying out grants to institutions of higher education 
     described in section 803(a)(1)(B) for cooperative education 
     under section 803;
       ``(3) not more than 11 percent shall be available for 
     demonstration projects under paragraph (1) of section 804(a);
       ``(4) not more than 11 percent shall be available for 
     training and resource centers under paragraph (2) of section 
     804(a); and
       ``(5) not more than 3 percent shall be available for 
     research under paragraph (3) of section 804(a).
       ``(c) Availability of Appropriations.--Appropriations under 
     this title shall not be available for the payment of 
     compensation of students for employment by employers under 
     arrangements pursuant to this title.
       ``(d) Sunset.--The authority to carry out this title shall 
     expire at the end of fiscal year 2012.

     ``SEC. 803. GRANTS FOR COOPERATIVE EDUCATION.

       ``(a) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized--
       ``(A) from the amount available under section 802(b)(1) in 
     each fiscal year and in accordance with the provisions of 
     this title, to make grants to institutions of higher 
     education or combinations of such institutions that have not 
     previously received a grant under this paragraph to pay the 
     Federal share of the cost of planning, establishing, 
     expanding, or carrying out programs of cooperative education 
     by such institutions or combinations of institutions; and
       ``(B) from the amount available under section 802(b)(2) in 
     each fiscal year and in accordance with the provisions of 
     this title, to make grants to institutions of higher 
     education that are operating an existing cooperative 
     education program (as determined by the Secretary) to pay the 
     cost of planning, establishing, expanding, or carrying out 
     programs of cooperative education by such institutions.
       ``(2) Program requirement.--Cooperative education programs 
     assisted under this section shall provide alternating or 
     parallel periods of academic study and of public or private 
     employment, giving students work experience related to their 
     academic or occupational objectives and the opportunity to 
     earn the funds necessary for continuing and completing their 
     education.
       ``(3) Amount of grants.--
       ``(A) The amount of each grant awarded pursuant to 
     paragraph (1)(A) to any institution of higher education or 
     combination of such institutions in any fiscal year shall not 
     exceed $500,000.
       ``(B)(i) Except as provided in clauses (ii) and (iii), the 
     Secretary shall award grants in each fiscal year to each 
     institution of higher education described in paragraph (1)(B) 
     that has an application approved under subsection (b) in an 
     amount which bears the same ratio to the amount reserved 
     pursuant to section 802(b)(2) for such fiscal year as the 
     number of unduplicated students placed in cooperative 
     education jobs during the preceding fiscal year (other than 
     cooperative education jobs under section 804 and as 
     determined by the Secretary) by such institution of higher 
     education bears to the total number of all such students 
     placed in such jobs during the preceding fiscal year by all 
     such institutions.
       ``(ii) No institution of higher education shall receive a 
     grant pursuant to paragraph (1)(B) in any fiscal year in an 
     amount which exceeds 25 percent of such institution's 
     cooperative education program's personnel and operating 
     budget for the preceding fiscal year.
       ``(iii) The minimum annual grant amount which an 
     institution of higher education is eligible to receive under 
     paragraph (1)(B) is $1,000 and the maximum annual grant 
     amount is $75,000.
       ``(4) Limitation.--The Secretary shall not award grants 
     pursuant to paragraphs (1)(A) and (1)(B) to the same 
     institution of higher education or combination of such 
     institution in any one fiscal year.
       ``(5) Uses.--Grants under paragraph (1)(B) shall be used 
     exclusively--
       ``(A) to expand the quality and participation of a 
     cooperative education program;
       ``(B) for outreach in new curricular areas; and
       ``(C) for outreach to potential participants including 
     underrepresented and nontraditional populations.
       ``(b) Applications.--Each institution of higher education 
     or combination of such institutions desiring to receive a 
     grant under this section shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     shall prescribe. Each such application shall--
       ``(1) set forth the program or activities for which a grant 
     is authorized under this section;
       ``(2) specify each portion of such program or activities 
     which will be performed by a nonprofit organization or 
     institution other than the applicant, and the compensation to 
     be paid for such performance;
       ``(3) provide that the applicant will expend during such 
     fiscal year for the purpose of such

[[Page 18506]]

     program or activities not less than the amount expended for 
     such purpose during the previous fiscal year;
       ``(4) describe the plans which the applicant will carry out 
     to assure, and contain a formal statement of the 
     institution's commitment which assures, that the applicant 
     will continue the cooperative education program beyond the 5-
     year period of Federal assistance described in subsection 
     (c)(1) at a level which is not less than the total amount 
     expended for such program during the first year such program 
     was assisted under this section;
       ``(5) provide that, in the case of an institution of higher 
     education that provides a 2-year program which is acceptable 
     for full credit toward a bachelor's degree, the cooperative 
     education program will be available to students who are 
     certificate or associate degree candidates and who carry at 
     least one-half the normal full-time academic workload;
       ``(6) provide that the applicant will--
       ``(A) for each fiscal year for which the applicant receives 
     a grant, make such reports with respect to the impact of the 
     cooperative education program in the previous fiscal year as 
     may be essential to ensure that the applicant is complying 
     with the provisions of this section, including--
       ``(i) the number of unduplicated student applicants in the 
     cooperative education program;
       ``(ii) the number of unduplicated students placed in 
     cooperative education jobs;
       ``(iii) the number of employers who have hired cooperative 
     education students;
       ``(iv) the average income for students derived from working 
     in cooperative education jobs; and
       ``(v) the increase or decrease in the number of 
     unduplicated students placed in cooperative education jobs in 
     each fiscal year compared to the previous fiscal year; and
       ``(B) keep such records as are essential to ensure that the 
     applicant is complying with the provisions of this title, 
     including the notation of cooperative education employment on 
     the student's transcript;
       ``(7) describe the extent to which programs in the academic 
     discipline for which the application is made have had a 
     favorable reception by public and private sector employers;
       ``(8) describe the extent to which the institution is 
     committed to extending cooperative education on an 
     institution-wide basis for all students who can benefit;
       ``(9) describe the plans that the applicant will carry out 
     to evaluate the applicant's cooperative education program at 
     the end of the grant period;
       ``(10) provide for such fiscal control and fund accounting 
     procedures as may be necessary to assure proper disbursement 
     of, and accounting for, Federal funds paid to the applicant 
     under this title;
       ``(11) demonstrate a commitment to serving all underserved 
     populations; and
       ``(12) include such other information as is essential to 
     carry out the provisions of this title.
       ``(c) Duration of Grants; Federal Share.--
       ``(1) Duration of grants.--No individual institution of 
     higher education may receive, individually or as a 
     participant in a combination of such institutions--
       ``(A) a grant pursuant to subsection (a)(1)(A) for more 
     than 5 fiscal years; or
       ``(B) a grant pursuant to subsection (a)(1)(B) for more 
     than 5 fiscal years.
       ``(2) Federal share.--The Federal share of a grant under 
     section 803(a)(1)(A) may not exceed--
       ``(A) 85 percent of the cost of carrying out the program or 
     activities described in the application in the first year the 
     applicant receives a grant under this section;
       ``(B) 70 percent of such cost in the second such year;
       ``(C) 55 percent of such cost in the third such year;
       ``(D) 40 percent of such cost in the fourth such year; and
       ``(E) 25 percent of such cost in the fifth such year.
       ``(3) Special rule.--Any provision of law to the contrary 
     notwithstanding, the Secretary shall not waive the provisions 
     of this subsection.
       ``(d) Maintenance of Effort.--If the Secretary determines 
     that a recipient of funds under this section has failed to 
     maintain the fiscal effort described in subsection (b)(3), 
     then the Secretary may elect not to make grant payments under 
     this section to such recipient.

     ``SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING 
                   AND RESOURCE CENTERS; AND RESEARCH.

       ``(a) Authorization.--The Secretary is authorized, in 
     accordance with the provisions of this section, to make 
     grants and enter into contracts--
       ``(1) from the amounts available in each fiscal year under 
     section 802(b)(3), for the conduct of demonstration projects 
     designed to demonstrate or determine the feasibility or value 
     of innovative methods of cooperative education;
       ``(2) from the amounts available in each fiscal year under 
     section 802(b)(4), for the conduct of training and resource 
     centers designed to--
       ``(A) train personnel in the field of cooperative 
     education;
       ``(B) improve materials used in cooperative education 
     programs if such improvement is conducted in conjunction with 
     other activities described in this paragraph;
       ``(C) furnish technical assistance to institutions of 
     higher education to increase the potential of the institution 
     to continue to conduct a cooperative education program 
     without Federal assistance;
       ``(D) encourage model cooperative education programs which 
     furnish education and training in occupations in which there 
     is a national need;
       ``(E) support partnerships under which an institution 
     carrying out a comprehensive cooperative education program 
     joins with one or more institutions of higher education in 
     order to--
       ``(i) assist the institutions other than the comprehensive 
     cooperative education institution to develop and expand an 
     existing program of cooperative education; or
       ``(ii) establish and improve or expand comprehensive 
     cooperative education programs; and
       ``(F) encourage model cooperative education programs in the 
     fields of science and mathematics for women and minorities 
     who are underrepresented in such fields; and
       ``(3) from the amounts available in each fiscal year under 
     section 802(b)(5), for the conduct of research relating to 
     cooperative education.
       ``(b) Administrative Provision.--
       ``(1) In general.--To carry out this section, the Secretary 
     may--
       ``(A) make grants to or contracts with institutions of 
     higher education, or combinations of such institutions; and
       ``(B) make grants to or contracts with other public or 
     private nonprofit agencies or organizations, whenever such 
     grants or contracts will make an especially significant 
     contribution to attaining the objectives of this section.
       ``(2) Limitation.--
       ``(A) The Secretary may not use more than 3 percent of the 
     amount appropriated to carry out this section in each fiscal 
     year to make grants or enter into contracts described in 
     paragraph (1)(A).
       ``(B) The Secretary may use not more than 3 percent of the 
     amount appropriated to carry out this section in each fiscal 
     year to make grants or enter into contracts described in 
     paragraph (1)(B).
       ``(c) Supplement Not Supplant.--A recipient of a grant or 
     contract under this section may use the funds provided only 
     to supplement and, to the extent possible, increase the level 
     of funds that would, in the absence of such funds, be made 
     available from non-Federal sources to carry out the 
     activities supported by such grant or contract, and in no 
     case to supplant such funds from non-Federal sources.

                         ``PART B--LOW TUITION

     ``SEC. 811. INCENTIVES AND REWARDS FOR LOW TUITION.

       ``(a) Rewards for Low Tuition.--
       ``(1) Competitive grants.--The Secretary shall award grants 
     on a competitive basis to institutions of higher education 
     that, for academic year 2008-2009 or any succeeding academic 
     year, have an annual net tuition increase (expressed as a 
     percentage) for the most recent academic year for which 
     satisfactory data is available that is equal to or less than 
     the percentage change in the higher education price index for 
     such academic year.
       ``(2) Use of funds.--Funds awarded to an institution of 
     higher education under paragraph (1) shall be distributed by 
     the institution in the form of need-based grant aid to 
     students who are eligible for Federal Pell Grants, except 
     that no student shall receive an amount under this section 
     that would cause the amount of total financial aid received 
     by such student to exceed the cost of attendance of the 
     institution.
       ``(b) Rewards for Guaranteed Tuition.--
       ``(1) Bonus.--For each institution of higher education that 
     the Secretary of Education determines complies with the 
     requirements of paragraph (2) or (3) of this subsection, the 
     Secretary shall provide to such institution a bonus amount. 
     Such institution shall award the bonus amount first to 
     students who are eligible for Federal Pell Grants who were in 
     attendance at the institution during the award year that such 
     institution satisfied the eligibility criteria for 
     maintaining low tuition and fees, then to students who are 
     eligible for Federal Pell Grants who were not in attendance 
     at the institution during such award year, in the form of 
     need-based aid.
       ``(2) 4-year institutions.--An institution of higher 
     education that provides a program of instruction for which it 
     awards a bachelor's degree complies with the requirements of 
     this paragraph if such institution guarantees that for any 
     academic year beginning on or after July 1, 2008, and for 
     each of the 4 succeeding continuous academic years, the net 
     tuition charged to an undergraduate student will not exceed--
       ``(A) the amount that the student was charged for an 
     academic year at the time he or she first enrolled in the 
     institution of higher education, plus
       ``(B) the product of the percentage increase in the higher 
     education price index for the prior academic year, or the 
     most recent prior academic year for which data is available, 
     multiplied by the amount determined under subparagraph (A).
       ``(3) Less-than 4-year institutions.--An institution of 
     higher education that does not provide a program of 
     instruction for which it awards a bachelor's degree complies 
     with the requirements of this paragraph if such institution 
     guarantees that for any academic year (or the equivalent) 
     beginning on or after July 1, 2008, and for each of the 1.5 
     succeeding continuous academic years, the net tuition charged 
     to an undergraduate student will not exceed--
       ``(A) the amount that the student was charged for an 
     academic year at the time he or she first enrolled in the 
     institution of higher education, plus
       ``(B) the product of the percentage increase in the higher 
     education price index for the prior

[[Page 18507]]

     academic year, or the most recent prior academic year for 
     which data is available, multiplied by the amount determined 
     under subparagraph (A).
       ``(c) Maintaining Affordable Tuition.--
       ``(1) Institution reports.--If an institution of higher 
     education has an increase in annual net tuition (expressed as 
     a percentage), for the most recent academic year for which 
     satisfactory data is available, that is greater than the 
     percentage increase in the higher education price index for 
     such academic year, the institution is required to submit to 
     the Secretary the following information, within 6 months of 
     such determination--
       ``(A) a report on the factors contributing to the increase 
     in the institution's costs and the increase in net tuition 
     and fees charged to students, including identification of the 
     major areas in the institution's budget with the greatest 
     cost increases;
       ``(B) the institution's 3 most recent Form 990s submitted 
     to the Internal Revenue Service, as required under section 
     6033 of the Internal Revenue Code of 1986;
       ``(C) a description of the major areas of expenditures in 
     the institution's budget with the greatest increase for such 
     academic year; and
       ``(D) voluntary actions being taken by the institution to 
     reduce net tuition.
       ``(2) Report to congress.--The Secretary shall compile the 
     information submitted under this subsection and shall provide 
     to the relevant authorizing committees an annual report 
     relating to such information.
       ``(d) Priority.--In awarding incentives and rewards under 
     this section, the Secretary shall give priority to 
     institutions of higher education with the lowest annual net 
     tuition increase for the most recent academic year for which 
     satisfactory data is available, when compared with other 
     institutions of higher education with annual net tuition 
     increases that are equal to or less than the higher education 
     price index for such academic year.
       ``(e) Exemptions.--An institution shall still be eligible 
     to receive rewards under subsections (a) and (b), and will 
     not be penalized under subsection (c) if, for any 2-year 
     interval for which net tuition is computed under such 
     subsections--
       ``(1) with respect to the class of institutions described 
     in section 131(d)(5) to which the institution belongs, the 
     net tuition of the institution is in the lowest quartile of 
     institutions within such class, as determined by the 
     Secretary, during the last year of such 2-year interval; or
       ``(2) the institution has a percentage change in its net 
     tuition computed under subsection (a) or (c) that exceeds the 
     rate of change in the higher education price index (as 
     defined in section 401B(d)) over the same time period, but 
     the dollar amount of the net tuition increase is less than 
     $500.
       ``(f) Definitions.--
       ``(1) Net tuition.--The term `net tuition' has the same 
     meaning as provided in section 131(h).
       ``(2) Higher education price index.--The term `higher 
     education price index' has the same meaning as provided in 
     section 131(h).
       ``(g) Funding.--There shall be available to the Secretary 
     to carry out this section, from funds not otherwise 
     appropriated, $15,000,000 for each of the fiscal years 2008 
     through 2012.
       ``(h) Sunset.--The authority to carry out this section 
     shall expire at the end of fiscal year 2012.''.

   TITLE III--ENSURING A HIGHLY QUALIFIED TEACHER IN EVERY CLASSROOM

                          PART A--TEACH GRANTS

     SEC. 301. TEACH GRANTS.

       Part A of title IV (20 U.S.C. 1070a et seq.) is amended by 
     adding at the end the following new subpart:

                       ``Subpart 9--TEACH Grants

     ``SEC. 420L. PROGRAM ESTABLISHED.

       ``(a) Program Authority.--
       ``(1) Payments required.--The Secretary shall pay to each 
     eligible institution such sums as may be necessary to pay to 
     each eligible student (defined in accordance with section 
     484) who files an application and agreement in accordance 
     with section 420M, and who qualifies--
       ``(A) under paragraph (2) of section 420M(a), a TEACH Grant 
     in the amount of $4,000 for each academic year during which 
     that student is in attendance at the institution; and
       ``(B) under paragraphs (2) and (3) of section 420M(a), a 
     Bonus TEACH Grant in the amount of $500 (in addition to the 
     amount of the TEACH Grant under subparagraph (A)) for each 
     academic year during which that student so qualifies.
       ``(2) Reference.--Grants made under--
       ``(A) paragraph (1)(A) shall be known as `Teacher Education 
     Assistance for College and Higher Education Grants' or `TEACH 
     Grants'; and
       ``(B) paragraph (1)(B) shall be known as Bonus TEACH 
     Grants.
       ``(b) Payment Methodology.--
       ``(1) Prepayment.--Not less than 85 percent of any funds 
     provided to an institution under subsection (a) shall be 
     advanced to eligible institutions prior to the start of each 
     payment period and shall be based upon an amount requested by 
     the institution as needed to pay eligible students until such 
     time as the Secretary determines and publishes in the Federal 
     Register with an opportunity for comment, an alternative 
     payment system that provides payments to institutions in an 
     accurate and timely manner, except that this sentence shall 
     not be construed to limit the authority of the Secretary to 
     place an institution on a reimbursement system of payment.
       ``(2) Direct payment.--Nothing in this section shall be 
     interpreted to prohibit the Secretary from paying directly to 
     students, in advance of the beginning of the academic term, 
     an amount for which they are eligible, in cases where the 
     eligible institution elects not to participate in the 
     disbursement system required by paragraph (1).
       ``(3) Distribution of grants to students.--Payments under 
     this subpart shall be made, in accordance with regulations 
     promulgated by the Secretary for such purpose, in such manner 
     as will best accomplish the purposes of this subpart. Any 
     disbursement allowed to be made by crediting the student's 
     account shall be limited to tuition and fees and, in the case 
     of institutionally-owned housing, room and board. The student 
     may elect to have the institution provide other such goods 
     and services by crediting the student's account.
       ``(c) Reductions in Amount.--
       ``(1) Part-time students.--In any case where a student 
     attends an institution of higher education on less than a 
     full-time basis (including a student who attends an 
     institution of higher education on less than a half-time 
     basis) during any academic year, the amount of a grant under 
     this subpart for which that student is eligible shall be 
     reduced in proportion to the degree to which that student is 
     not attending on a full-time basis, in accordance with a 
     schedule of reductions established by the Secretary for the 
     purposes of this subpart, computed in accordance with this 
     subpart. Such schedule of reductions shall be established by 
     regulation and published in the Federal Register in 
     accordance with section 482 of this Act.
       ``(2) No exceeding cost.--The amount of a grant awarded 
     under this subpart, in combination with Federal assistance 
     and other student assistance, shall not exceed the cost of 
     attendance (as defined in section 472) at the institution at 
     which that student is in attendance. If, with respect to any 
     student, it is determined that the amount of a TEACH Grant or 
     a Bonus TEACH Grant exceeds the cost of attendance for that 
     year, the amount of the TEACH Grant or Bonus TEACH Grant, 
     respectively, shall be reduced until such grant does not 
     exceed the cost of attendance at such institution.
       ``(d) Period of Eligibility for Grants.--
       ``(1) Undergraduate and post-baccalaureate students.--The 
     period during which an undergraduate or post-baccalaureate 
     student may receive grants under this subpart shall be the 
     period required for the completion of the first undergraduate 
     baccalaureate or post-baccalaureate course of study being 
     pursued by that student at the institution at which the 
     student is in attendance except that--
       ``(A) any period during which the student is enrolled in a 
     noncredit or remedial course of study as defined in paragraph 
     (3) shall not be counted for the purpose of this paragraph; 
     and
       ``(B) the total amount that a student may receive under 
     this subpart for undergraduate or post-baccalaureate study 
     shall not exceed $16,000 with respect to a student who 
     receives only TEACH Grants, and $18,000 with respect to a 
     student who receives TEACH Grants and Bonus TEACH Grants.
       ``(2) Graduate students.--The period during which a 
     graduate student may receive grants under this subpart shall 
     be the period required for the completion of a master's 
     degree course of study being pursued by that student at the 
     institution at which the student is in attendance, except 
     that the total amount that a student may receive under this 
     subpart for graduate study shall not exceed $8,000 with 
     respect to a student who receives only TEACH Grants, and 
     $10,000 with respect to a student who receives TEACH Grants 
     and Bonus TEACH Grants.
       ``(3) Remedial course; study abroad.--Nothing in this 
     section shall exclude from eligibility courses of study which 
     are noncredit or remedial in nature (including courses in 
     English language acquisition) which are determined by the 
     institution to be necessary to help the student be prepared 
     for the pursuit of a first undergraduate baccalaureate or 
     post-baccalaureate degree or certificate or, in the case of 
     courses in English language instruction, to be necessary to 
     enable the student to utilize already existing knowledge, 
     training, or skills. Nothing in this section shall exclude 
     from eligibility programs of study abroad that are approved 
     for credit by the home institution at which the student is 
     enrolled.

     ``SEC. 420M. ELIGIBILITY; APPLICATIONS.

       ``(a) Applications; Demonstration of Eligibility.--
       ``(1) Filing required.--The Secretary shall from time to 
     time set dates by which students shall file applications for 
     grants under this subpart. Each student desiring a grant 
     under this subpart for any year shall file an application 
     containing such information and assurances as the Secretary 
     may deem necessary to enable the Secretary to carry out the 
     functions and responsibilities of this subpart.
       ``(2) Demonstration of teach grant eligibility.--Each 
     application submitted under paragraph (1) for a TEACH Grant 
     shall contain such information as is necessary to demonstrate 
     that--
       ``(A) if the applicant is an enrolled student--
       ``(i) the student is an eligible student for purposes of 
     section 484;
       ``(ii) the student--

       ``(I) has a grade point average that is determined, under 
     standards prescribed by the Secretary, to be comparable to a 
     3.25 average on a zero to 4.0 scale, except that, if the 
     student is in the first year of a program of undergraduate 
     education, such grade point average shall be determined on 
     the basis of the student's cumulative high school grade point 
     average; or

[[Page 18508]]

       ``(II) displayed high academic aptitude by receiving a 
     score above the 75th percentile on at least one of the 
     batteries in an undergraduate, post-baccalaureate, or 
     graduate school admissions test; and

       ``(iii) the student is completing coursework and other 
     requirements necessary to begin a career in teaching, or 
     plans to complete such coursework and requirements prior to 
     graduating; or
       ``(B) if the applicant is a current or prospective teacher 
     applying for a grant to obtain a graduate degree--
       ``(i) the applicant is a teacher or a retiree from another 
     occupation with expertise in a field in which there is a 
     shortage of teachers, such as math, science, special 
     education, English language acquisition, or another high-need 
     subject; or
       ``(ii) the applicant is or was a teacher who is using high-
     quality alternative certification routes, such as Teach for 
     America, to get certified.
       ``(3) Demonstration of bonus teach grant eligibility.--Each 
     application submitted under paragraph (1) for a Bonus TEACH 
     Grant shall contain such information as is necessary to 
     demonstrate that the applicant is--
       ``(A) eligible for, and has applied for, a TEACH Grant; and
       ``(B) a student enrolled in a qualified teacher preparation 
     program, as defined in section 420N.
       ``(b) Agreements To Serve.--Each application under 
     subsection (a) shall contain or be accompanied by an 
     agreement by the applicant that--
       ``(1) the applicant will--
       ``(A) serve as a full-time teacher for a total of not less 
     than 4 academic years within 8 years after completing the 
     course of study for which the applicant received a TEACH 
     Grant under this subpart;
       ``(B) teach in a school described in section 465(a)(2)(A);
       ``(C) with respect to an applicant for--
       ``(i) TEACH Grants, teach in any of the following fields: 
     mathematics, science, a foreign language, bilingual 
     education, or special education, or as a reading specialist, 
     or another field documented as high-need by the Federal 
     Government, State government, or local education agency and 
     approved by the Secretary; or
       ``(ii) TEACH Grants and Bonus TEACH Grants, teach 
     mathematics, science, or a science-related field;
       ``(D) submit evidence of such employment in the form of a 
     certification by the chief administrative officer of the 
     school upon completion of each year of such service; and
       ``(E) comply with the requirements for being a highly 
     qualified teacher as defined in section 9101 of the 
     Elementary and Secondary Education Act of 1965; and
       ``(2) in the event that the applicant is determined to have 
     failed or refused to carry out such service obligation, the 
     sum of the amounts of any TEACH Grants and Bonus TEACH Grants 
     received by such applicant will be treated as a loan and 
     collected from the applicant in accordance with subsection 
     (c) and the regulations thereunder.
       ``(c) Repayment for Failure To Complete Service.--In the 
     event that any recipient of a grant under this subpart fails 
     or refuses to comply with the service obligation in the 
     agreement under subsection (b), the sum of the amounts of any 
     TEACH Grants and Bonus TEACH Grants received by such 
     recipient shall be treated as a Direct Loan under part D of 
     title IV, and shall be subject to repayment, together with 
     interest thereon accruing after the period of service, in 
     accordance with terms and conditions specified by the 
     Secretary in regulations under this subpart.

     ``SEC. 420N. DEFINITIONS.

       ``For the purposes of this subpart:
       ``(1) Eligible institution.--The term `eligible 
     institution' means an institution of higher education, as 
     defined in section 102, that the Secretary determines--
       ``(A) provides high quality teacher preparation and 
     professional development services, including extensive 
     clinical experience as a part of pre-service preparation;
       ``(B) is financially sound;
       ``(C) provides pedagogical course work, or assistance in 
     the provision of such coursework, including the monitoring of 
     student performance, and formal instruction related to the 
     theory and practices of teaching; and
       ``(D) provides supervision and support services to 
     teachers, or assistance in the provision of such services, 
     including mentoring focused on developing effective teaching 
     skills and strategies.
       ``(2) Qualified teacher preparation program.--The term 
     `qualified teacher preparation program' means a program for 
     students and teachers described in subparagraph (A) or (B) of 
     section 420M(a)(2) (referred to jointly in this paragraph as 
     `teacher candidates') that--
       ``(A) recruits and prepares teacher candidates who major in 
     science, technology fields, special education, foreign 
     language, engineering, or mathematics disciplines to become 
     certified as elementary and secondary teachers in those 
     disciplines, special education teachers, or teachers of 
     English Language Learners, with the goals of improving 
     teacher knowledge and effectiveness and increasing elementary 
     and secondary student academic achievement;
       ``(B) is implemented by an institution of higher education 
     in partnership with high-need local educational agencies and 
     schools;
       ``(C) offers a baccalaureate degree, post-baccalaureate 
     teacher credential, or graduate degree with a concurrent 
     teacher certification to teacher candidates;
       ``(D) is implemented in coordination with the faculty of 
     the relevant departments of the institution of higher 
     education;
       ``(E) utilizes experienced teachers who have a demonstrated 
     record of success in teaching underserved students to 
     instruct teacher candidates in the disciplines described in 
     subparagraph (A);
       ``(F) provides teacher candidates with--
       ``(i) support services, including mentoring by experienced 
     teachers who have a demonstrated record of success in 
     teaching underserved students;
       ``(ii) exposure to, and field experience in, the classroom 
     within the first year of entering the qualified teacher 
     preparation program; and
       ``(iii) other related support practices while the teacher 
     candidates are participating in the program, and after such 
     candidates graduate from the institution of higher education 
     and are employed as teachers;
       ``(G) participates in partnerships which include the 
     institution of higher education and local educational 
     agencies and charter districts to provide opportunities for 
     teacher candidate field work;
       ``(H) focuses on increasing the number of teachers in the 
     disciplines described in subparagraph (A); and
       ``(I) encourages individuals from underrepresented 
     populations to enter into the teaching profession.
       ``(3) Post-baccalaureate.--The term `post-baccalaureate' 
     means a program of instruction that does not lead to a 
     graduate degree, and that consists of courses required by a 
     State in order for the student to receive a professional 
     certification or licensing credential that is required for 
     employment as a teacher in an elementary school or secondary 
     school in that State, except that such term shall not include 
     any program of instruction offered by an institution of 
     higher education that offers a baccalaureate degree in 
     education.

     ``SEC. 420O. PROGRAM PERIOD AND FUNDING.

       ``There shall be available to the Secretary to carry out 
     this subpart, from funds not otherwise appropriated, such 
     sums as may be necessary to provide TEACH Grants and Bonus 
     TEACH Grants in accordance with this subpart to each eligible 
     applicant.''.

                     PART B--CENTERS OF EXCELLENCE

     SEC. 311. CENTERS OF EXCELLENCE.

       Title II (20 U.S.C. 1021 et seq.) is amended by adding at 
     the end the following:

                    ``PART C--CENTERS OF EXCELLENCE

     ``SEC. 231. DEFINITIONS.

       ``As used in this part:
       ``(1) Eligible institution.--The term `eligible 
     institution' means--
       ``(A) an institution of higher education that has a teacher 
     preparation program that meets the requirements of section 
     203(b)(2)and that is--
       ``(i) a part B institution (as defined in section 322);
       ``(ii) a Hispanic-serving institution (as defined in 
     section 502);
       ``(iii) a Tribal College or University (as defined in 
     section 316);
       ``(iv) an Alaska Native-serving institution (as defined in 
     section 317(b)); or
       ``(v) a Native Hawaiian-serving institution (as defined in 
     section 317(b));
       ``(B) a consortium of institutions described in 
     subparagraph (A); or
       ``(C) an institution described in subparagraph (A), or a 
     consortium described in subparagraph (B), in partnership with 
     any other institution of higher education, but only if the 
     center of excellence established under section 232 is located 
     at an institution described in subparagraph (A).
       ``(2) Highly qualified.--The term `highly qualified' when 
     used with respect to an individual means that the individual 
     is highly qualified as determined under section 9101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801) or section 602 of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1401).
       ``(3) 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 (20 U.S.C. 6368).
       ``(4) 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 (20 U.S.C. 7801).

     ``SEC. 232. CENTERS OF EXCELLENCE.

       ``(a) Program Authorized.--From the amounts appropriated to 
     carry out this part, the Secretary is authorized to award 
     competitive grants to eligible institutions to establish 
     centers of excellence.
       ``(b) Use of Funds.--Grants provided by the Secretary under 
     this part shall be used to ensure that current and future 
     teachers are highly qualified, by carrying out one or more of 
     the following activities:
       ``(1) Implementing reforms within teacher preparation 
     programs to ensure that such programs are preparing teachers 
     who are highly qualified, are able to understand 
     scientifically based research, and are able to use advanced 
     technology effectively in the classroom, including use for 
     instructional techniques to improve student academic 
     achievement, by--
       ``(A) retraining faculty; and
       ``(B) designing (or redesigning) teacher preparation 
     programs that--

[[Page 18509]]

       ``(i) prepare teachers to close student achievement gaps, 
     are based on rigorous academic content, scientifically based 
     research (including scientifically based reading research), 
     and challenging State student academic content standards; and
       ``(ii) promote strong teaching skills.
       ``(2) Providing sustained and high-quality preservice 
     clinical experience, including the mentoring of prospective 
     teachers by exemplary teachers, 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, 
     for such interaction.
       ``(3) Developing and implementing initiatives to promote 
     retention of highly qualified teachers and principals, 
     including minority teachers and principals, including 
     programs that provide--
       ``(A) teacher or principal mentoring from exemplary 
     teachers or principals; or
       ``(B) induction and support for teachers and principals 
     during their first 3 years of employment as teachers or 
     principals, respectively.
       ``(4) Awarding scholarships based on financial need to help 
     students pay the costs of tuition, room, board, and other 
     expenses of completing a teacher preparation program.
       ``(5) Disseminating information on effective practices for 
     teacher preparation and successful teacher certification and 
     licensure assessment preparation strategies.
       ``(6) Activities authorized under sections 202, 203, and 
     204.
       ``(c) Application.--Any eligible institution desiring a 
     grant under this section shall submit an application to the 
     Secretary at such a time, in such a manner, and accompanied 
     by such information as the Secretary may require.
       ``(d) Minimum Grant Amount.--The minimum amount of each 
     grant under this part shall be $500,000.
       ``(e) Limitation on Administrative Expenses.--An eligible 
     institution that receives a grant under this part may not use 
     more than 2 percent of the grant funds for purposes of 
     administering the grant.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this part.

     ``SEC. 233. APPROPRIATIONS.

       ``There shall be available to the Secretary, from funds not 
     otherwise appropriated, $50,000,000 for the period beginning 
     with fiscal year 2008 and ending with fiscal year 2012, to 
     carry out this part beginning with academic year 2008-2009, 
     which shall remain available until expended. The authority to 
     carry out this part shall expire at the end of fiscal year 
     2012.''.

         TITLE IV--LEVERAGING FUNDS TO INCREASE COLLEGE ACCESS

PART A--STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND 
                     MINORITY-SERVING INSTITUTIONS

     SEC. 401. INVESTMENT IN HISTORICALLY BLACK COLLEGES AND 
                   UNIVERSITIES AND MINORITY-SERVING INSTITUTION.

       Title IV is amended by adding at the end the following new 
     part:

 ``PART I--STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES 
                AND OTHER MINORITY-SERVING INSTITUTIONS

     ``SEC. 499A. INVESTMENT IN HISTORICALLY BLACK COLLEGES AND 
                   UNIVERSITIES AND OTHER MINORITY-SERVING 
                   INSTITUTION.

       ``(a) Eligible Institution.--An institution of higher 
     education is eligible to receive funds from the amounts made 
     available under this section if such institution is--
       ``(1) a part B institution (as defined in section 322 (20 
     U.S.C. 1061));
       ``(2) a Hispanic-serving institution (as defined in section 
     502 (20 U.S.C. 1101a));
       ``(3) a Tribal College or University (as defined in section 
     316 (20 U.S.C. 1059c));
       ``(4) an Alaska Native-serving institution or a Native 
     Hawaiian-serving institution (as defined in section 317(b) 
     (20 U.S.C. 1059d(b)));
       ``(5) a Predominantly Black Institution (as defined in 
     subsection (c)); or
       ``(6) an Asian and Pacific Islander-serving institution (as 
     defined in subsection (c)).
       ``(b) New Investment of Funds.--
       ``(1) In general.--There shall be available to the 
     Secretary to carry out this section, from funds not otherwise 
     appropriated, $100,000,000 for each of the fiscal years 2008 
     through 2012. The authority to carry out this section shall 
     expire at the end of fiscal year 2012.
       ``(2) Allocation and allotment.--
       ``(A) In general.--Of the amounts made available under 
     paragraph (1) for any fiscal year--
       ``(i) 40 percent shall be available for allocation under 
     subparagraph (B);
       ``(ii) 40 percent shall be available for allocation under 
     subparagraph (C); and
       ``(iii) 20 percent shall be available for allocation under 
     subparagraph (D).
       ``(B) HSI stem and articulation programs.--The amount made 
     available for allocation under this subparagraph by 
     subparagraph (A)(i) for any fiscal year shall be available 
     for Hispanic-serving Institutions for activities described in 
     section 503, with a priority given to applications that 
     propose--
       ``(i) to increase the number of Hispanic and other low 
     income students attaining degrees in the fields of science, 
     technology, engineering and mathematics; and
       ``(ii) to develop model transfer and articulation 
     agreements between 2-year Hispanic-serving institutions and 
     4-year institutions in such fields.
       ``(C) Allocation and allotment hbcus and pbis.--From the 
     amount made available for allocation under this subparagraph 
     by subparagraph (A)(ii) for any fiscal year--
       ``(i) $34,000,000 shall be available to eligible 
     institutions described in subsection (a)(1) and shall be made 
     available as grants under section 323 and allotted among such 
     institutions under section 324, treating such amount, plus 
     the amount appropriated for such fiscal year in a regular or 
     supplemental appropriation Act to carry out part B of title 
     III, as the amount appropriated to carry out part B of title 
     III for purposes of allotments under section 324, for use by 
     such institutions with a priority for--

       ``(I) activities described in paragraphs (1), (2), (4), 
     (5), and (10) of section 323(a); and
       ``(II) other activities, consistent with the institution's 
     comprehensive plan and designed to increase the institution's 
     capacity to prepare students for careers in the physical and 
     natural sciences, mathematics, computer science and 
     information technology and sciences, engineering, language 
     instruction in the less-commonly taught languages and 
     international affairs, and nursing and allied health 
     professions; and

       ``(ii) $6,000,000 shall be available to eligible 
     institutions described in subsection (a)(5) and shall be 
     available for a competitive grant program to award 10 grants 
     of $600,000 annually for programs in the following areas: 
     science, technology, engineering, or mathematics (STEM); 
     health education; internationalization or globalization; 
     teacher preparation; or improving educational outcomes of 
     African American males.
       ``(D) Allocation and allotment to other minority-serving 
     institutions.--From the amount made available for allocation 
     under this subparagraph by subparagraph (A)(iii) for any 
     fiscal year (in this subparagraph referred to as the 
     `allocable amount')--
       ``(i) 60 percent of the allocable amount for such fiscal 
     year shall be available to eligible institutions described in 
     subsection (a)(3) and shall be made available as grants under 
     section 316, treating such 60 percent of the allocable amount 
     as part of the amount appropriated for such fiscal year in a 
     regular or supplemental appropriation Act to carry out such 
     section, and using such 60 percent for purposes described in 
     subsection (c) of such section;
       ``(ii) 30 percent of the allocable amount for such fiscal 
     year shall be available to eligible institutions described in 
     subsection (a)(4) and shall be made available as grants under 
     section 317, treating such 30 percent of the allocable amount 
     as part of the amount appropriated for such fiscal year in a 
     regular or supplemental appropriation Act to carry out such 
     section and using such 60 percent for purposes described in 
     subsection (a) of such section; and
       ``(iii) 10 percent of the allocable amount for such fiscal 
     year shall be available to eligible institutions described in 
     subsection (a)(6) for activities described in section 311(c).
       ``(c) Definitions.--
       ``(1) Predominantly black institution.--The term 
     `Predominantly Black institution' means an institution of 
     higher education that--
       ``(A) has an enrollment of needy undergraduate students as 
     required and defined by paragraph (2);
       ``(B) has an average educational and general expenditure 
     which is low, per full-time equivalent undergraduate student 
     in comparison with the average educational and general 
     expenditure per full-time equivalent undergraduate student of 
     institutions that offer similar instruction, except that the 
     Secretary may apply the waiver requirements described in 
     section 392(b) to this subparagraph in the same manner as the 
     Secretary applies the waiver requirements to section 
     312(b)(1)(B);
       ``(C) has an enrollment of undergraduate students--
       ``(i) that is at least 40 percent Black American students;
       ``(ii) that is at least 1,000 undergraduate students;
       ``(iii) of which not less than 50 percent of the 
     undergraduate students enrolled at the institution are low-
     income individuals or first-generation college students (as 
     that term is defined in section 402A(g)); and
       ``(iv) of which not less than 50 percent of the 
     undergraduate students are enrolled in an educational program 
     leading to a bachelor's or associate's degree that the 
     institution is licensed to award by the State in which it is 
     located;
       ``(D) is legally authorized to provide, and provides within 
     the State, an educational program for which the institution 
     of higher education awards a bachelors degree, or in the case 
     of a junior or community college, an associate's degree;
       ``(E) is accredited by a nationally recognized accrediting 
     agency or association determined by the Secretary to be a 
     reliable authority as to the quality of training offered, or 
     is, according to such an agency or association, making 
     reasonable progress toward accreditation; and
       ``(F) is not receiving assistance under part B of title 
     III.
       ``(2) Enrollment of needy students.--The term `enrollment 
     of needy students' means the enrollment at an eligible 
     institution with respect to which not less than 50 percent of 
     the undergraduate students enrolled in an academic program 
     leading to a degree--
       ``(A) in the second fiscal year preceding the fiscal year 
     for which the determination is made, were Federal Pell Grant 
     recipients for such year;

[[Page 18510]]

       ``(B) come from families that receive benefits under a 
     means-tested Federal benefits program (as defined in 
     paragraph (4));
       ``(C) attended a public or nonprofit private secondary 
     school--
       ``(i) that is in the school district of a local educational 
     agency that was eligible for assistance under part A of title 
     I of the Elementary and Secondary Education Act of 1965 for 
     any year during which the student attended such secondary 
     school; and
       ``(ii) which for the purpose of this paragraph and for that 
     year was determined by the Secretary (pursuant to regulations 
     and after consultation with the State educational agency of 
     the State in which the school is located) to be a school in 
     which the enrollment of children counted under section 
     1113(a)(5) of such Act exceeds 30 percent of the total 
     enrollment of such school; or
       ``(D) are first-generation college students (as that term 
     is defined in section 402A(g)), and a majority of such first-
     generation college students are low-income individuals.
       ``(3) Low-income individual.--The term `low-income 
     individual' has the meaning given such term in section 
     402A(g).
       ``(4) Means-tested federal benefit program.--The term 
     `means-tested Federal benefit program' means a program of the 
     Federal Government, other than a program under title IV, in 
     which eligibility for the programs' benefits, or the amount 
     of such benefits, or both, are determined on the basis of 
     income or resources of the individual or family seeking the 
     benefit.
       ``(5) Asian american and pacific islander-serving 
     institution.--The term `Asian American and Pacific Islander-
     serving institution' means an institution of higher education 
     that--
       ``(A) is an eligible institution under section 312(b); and
       ``(B) at the time of application, has an enrollment of 
     undergraduate students that is at least 10 percent Asian 
     American and Pacific Islander students.
       ``(6) Asian american.--The term `Asian American' has the 
     meaning given the term `Asian' in the Office of Management 
     and Budget's Standards for Maintaining, Collecting, and 
     Presenting Federal Data on Race and Ethnicity as published on 
     October 30, 1997 (62 Fed. Reg. 58789).
       ``(7) Pacific islander.--The term `Pacific Islander' has 
     the meaning given the term `Native Hawaiian' or `Other 
     Pacific Islander' in such Standards for Maintaining, 
     Collecting, and Presenting Federal Data on Race and 
     Ethnicity.
       ``(d) Termination of Authority.--The authority to carry out 
     this section expires at the end of fiscal year 2012.''.

                PART B--COLLEGE ACCESS CHALLENGE GRANTS

     SEC. 411. COLLEGE ACCESS CHALLENGE GRANTS.

       (a) Challenge Grant Program Established.--
       (1) Program established.--The Secretary shall establish a 
     program to award matching grants to increase the number of 
     eligible students from underserved populations who enter and 
     complete college by providing grants to philanthropic 
     organizations who are members of eligible consortia to carry 
     out the activities of the consortia to achieve this purpose, 
     including--
       (A) providing need-based grants to eligible students;
       (B) providing support to eligible students through school- 
     or institution-based mentoring programs; and
       (C) conducting outreach programs to encourage eligible 
     students to pursue higher education.
       (2) Grant period; renewability.--Grants under this section 
     shall be awarded for one 5-year period, and may not be 
     renewed.
       (3) Grant amounts.--
       (A) In general.--A grant awarded under this part for a 
     given fiscal year to a philanthropic organization shall be in 
     an amount equal to the lesser of--
       (i) 200 percent of the amount of charitable gifts received 
     in the preceding fiscal year by the eligible consortia, 
     including charitable gifts received by the individual members 
     of the consortia with which the philanthropic organization is 
     associated; or
       (ii) the maximum grant amount established by the Secretary 
     by regulation, pursuant to subsection (f).
       (B) Gifts provided in cash or in-kind.--For the purposes of 
     subparagraph (A), the charitable gifts received by an 
     eligible consortia and its members may be provided in cash or 
     in-kind, including physical non-cash contributions of 
     monetary value such as property, facilities, and equipment, 
     but excluding services.
       (b) Uses of Grant.--
       (1) In general.--A philanthropic organization receiving a 
     grant under this section shall--
       (A) provide grants to eligible students; and
       (B) distribute grants to members of the consortia with 
     which the philanthropic organization is affiliated, in 
     accordance with the plan described in subsection (c)(2)(A), 
     to fund the activities of such consortia in accordance with 
     the application under subsection (c).
       (2) Limitation.--Not more than 15 percent of the funds made 
     available annually through a grant under this section may be 
     used for administrative purposes.
       (c) Applications.--A philanthropic organization desiring 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. Such application 
     shall include the following:
       (1) A description of an eligible consortia that meets the 
     requirements of subsection (d), with which the philanthropic 
     organization is affiliated, in accordance with subsection 
     (g).
       (2) A detailed description of--
       (A) the philanthropic organization's plans for distributing 
     the matching grant funds among the members of the eligible 
     consortia; and
       (B) the eligible consortia's plans for using the matching 
     grant funds, including how the funds will be used to provide 
     financial aid, mentoring, and outreach programs to eligible 
     students.
       (3) A plan to ensure the viability of the eligible 
     consortia and the work of the consortia beyond the grant 
     period.
       (4) A detailed description of the activities that carry out 
     this section that are conducted by the eligible consortia at 
     the time of the application, and how the matching grant funds 
     will assist the eligible consortia with expanding and 
     enhancing such activities.
       (5) A description of the organizational structure that will 
     be used to administer the activities carried out under the 
     plan, including a description of the system used to track the 
     participation of students who receive grants to degree 
     completion.
       (6) A description of the strategies that will be used to 
     identify eligible students who are enrolled in secondary 
     school and who may benefit from the activities of the 
     eligible consortia.
       (d) Eligible Consortia.--An eligible consortia with which a 
     philanthropic organization is affiliated for the program 
     under this section shall--
       (1) be a partnership of mulitple entities that have agreed 
     to work together to carry out this section, including--
       (A) such philanthropic organization, which shall serve as 
     the manager of the consortia;
       (B) a State that demonstrates a commitment to ensuring the 
     creation of a Statewide system to address the issues of early 
     intervention and financial support for eligible students to 
     enter and remain in college; and
       (C) at the discretion of the philanthropic organization 
     described in subparagraph (A), additional partners, including 
     other non-profit organizations, government entities 
     (including local municipalities, school districts, cities, 
     and counties), institutions of higher education, and other 
     public or private programs that provide mentoring or outreach 
     programs; and
       (2) conduct activites to assist eligible students with 
     entering and remaining in college, which include--
       (A) providing need-based grants to eligible students;
       (B) providing early notification to low-income students of 
     their potential eligibility for Federal financial aid (which 
     may include assisting students and families with filling out 
     FAFSA forms), as well as financial aid and other support 
     available from the eligible consortia;
       (C) encouraging increased eligible student participation in 
     higher education through mentoring or outreach programs; and
       (D) conducting marketing and outreach efforts that are 
     designed to--
       (i) encourage full participation of eligible students in 
     the activities of the consortia that carry out this section; 
     and
       (ii) provide the communities impacted by the activities of 
     the consortia with a general knowledge about the efforts of 
     the consortia.
       (e) Regulations.--The Secretary shall promulgate 
     regulations to carry out this section. Such regulations shall 
     include--
       (1) the maximum grant amount that may be awarded to a 
     philanthropic organization under this section;
       (2) the minimum amount of chartable gifts an eligible 
     consortia (including its members) shall receive in a fiscal 
     year for the philanthropic organization affiliated with such 
     consortia to be eligible for a grant under this section.
       (f) Definitions.--For the purposes of this section:
       (1) Eligible student.--The term ``eligible student'' means 
     an individual who--
       (A) is a member of an underserved population;
       (B) is enrolled--
       (i) in a secondary school pursuing a high school diploma; 
     or
       (ii) in an institution of higher education or is planning 
     to attend an institution of higher education; and
       (C) either--
       (i) is receiving, or has received, financial assistance or 
     support services from the consortium; or
       (ii) meets 2 or more of the following criteria:

       (I) Has an expected family contribution equal to zero (as 
     described in section 479 of the Higher Education Act of 1965) 
     or a comparable alternative based upon the State's approved 
     criteria in section 415C(b)(4) of such Act.
       (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 need-based 
     undergraduate award.
       (IV) Is participating in, or has participated in, a 
     Federal, State, institutional, or community mentoring or 
     outreach program, as recognized by the eligible consortia 
     carrying out activities under this section.

       (2) Philanthropic organization.--The term ``philanthropic 
     organization'' means a non-profit organization--
       (A) that does not receive funds under title IV of the 
     Higher Education Act of 1965 or under the Elementary and 
     Secondary Education Act of 1965;
       (B) that is not a local educational agency or an insitution 
     of higher education;

[[Page 18511]]

       (C) that has a demonstrated record of dispersing grant aid 
     to underserved populations to ensure access to, and 
     participation in, higher education;
       (D) that is affiliated with an eligible consortia (as 
     defined in subsection (d)) to carry out this section; and
       (E) the primary purpose of which is to provide financial 
     aid and support services to students from underrepresented 
     populations to increase the number of such students who enter 
     and remain in college.
       (3) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, and 
     Puerto Rico.
       (4) Underserved population.--The term ``underserved 
     population'' means a group of individuals who traditionally 
     have not been well represented in the general population of 
     students who pursue and successfully complete a higher 
     education degree.
       (g) Program Funding.--
       (1) In general.--There shall be available to the Secretary 
     to carry out this section, from funds not otherwise 
     appropriated, $300,000,000 for the period beginning with 
     fiscal year 2008 and ending with fiscal year 2012.
       (2) Use of excess funds.--If, at the end of a fiscal year, 
     the funds available for awarding grants under this section 
     exceed the amount necessary to make such grants, then all of 
     the excess funds shall remain available for the subsequent 
     fiscal year, and shall be used to award grants under section 
     401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) for 
     such subsequent fiscal year.
       (h) Sunset.--The authority to carry out this section shall 
     expire at the end of fiscal year 2012.

                          PART C--UPWARD BOUND

     SEC. 412. UPWARD BOUND.

       (a) Absolute Priority Prohibited in Upward Bound Program.--
     Section 402C (20 U.S.C. 1070a-13) is amended by adding at the 
     end the following new subsection:
       ``(f) Absolute Priority Prohibited in Upward Bound 
     Program.--Except as otherwise expressly provided by amendment 
     to this section, the Secretary shall not implement or 
     enforce, and shall rescind, the absolute priority for Upward 
     Bound Program participant selection and evaluation published 
     by the Department of Education in the Federal Register on 
     September 22, 2006 (71 Fed. Reg. 55447 et seq.).''.
       (b) Additional Funds.--Section 402C is further amended by 
     adding after subsection (f) (as added by subsection (a)) the 
     following new subsection:
       ``(g) Additional Funds.--
       ``(1) Authorization and appropriation.--There are 
     authorized to be appropriated, and there are appropriated to 
     the Secretary, from funds not otherwise appropriated, 
     $30,000,000 for each of the fiscal years 2008 through 2011 to 
     carry out paragraph (2), except that any amounts that remain 
     unexpended for such purpose for each of such fiscal years may 
     be available for technical assistance and administration 
     costs for the Upward Bound program.
       ``(2) Use of funds.--The amounts made available by 
     paragraph (1) shall be available to provide assistance to all 
     Upward Bound projects that did not receive assistance in 
     fiscal year 2007 and that have a grant score above 70. Such 
     assistance shall be made available in the form of 4-year 
     grants.''.

  The SPEAKER pro tempore. After 1 hour of debate on the bill, as 
amended, it shall be in order to consider the amendment in the nature 
of a substitute printed in part B of the report if offered by the 
gentleman from California (Mr. McKeon) or his designee, which shall be 
considered read, and shall be separately debatable for 1 hour, equally 
divided and controlled by the proponent and an opponent.
  The gentleman from California (Mr. George Miller) and the gentleman 
from California (Mr. McKeon) each will control 30 minutes of debate on 
the bill.
  The Chair recognizes the gentleman from California (Mr. George 
Miller).
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself 5 
minutes.
  Mr. Speaker, I rise in strong support of H.R. 2669, the College Cost 
Reduction Act of 2007, which was reported by the Committee on Education 
and Labor pursuant to the reconciliation instructions of the budget 
resolution. The committee was tasked to decrease the deficit by $750 
million without reducing the assistance that makes college more 
affordable to students.
  In keeping with that policy, this bill will significantly reduce the 
costs that place college out of reach for far too many students today. 
This bill represents the largest effort to help students and families 
pay for college since 1944, when the Congress passed the GI Bill, which 
helped millions of veterans go to college, the first generation to do 
so under that legislation.
  For years, college costs are rising rapidly and are far outstripping 
families' ability to pay for them. Students are graduating with more 
debt than ever before and are working harder to pay back the loans 
which they borrowed to pay for their college education.
  Several hundred thousand students a year now decide to forego a 
college education, even though they are completely qualified, fully 
prepared to go to college, because they don't know how they'll pay for 
it or how they'll manage the debt that they will inherit when they 
graduate.
  Recognizing this need, H.R. 2669 demonstrates our commitment to 
growing and strengthening America's middle class by making college more 
affordable and accessible for all qualified students. It also 
recognizes our commitment to those who are less fortunate, for low-
income families, to make sure that we increase the Pell Grants that are 
available to the students, and also low-cost loans to those same 
students who need to borrow beyond the Pell Grant.
  The College Cost Reduction Act, which passed the Committee on 
Education and Labor with bipartisan support, boosts the college 
financial aid by roughly $18 billion over the next 5 years. And this 
bill does so in a fiscally responsible way. We are committed to the 
pay-as-you-go budget rules, and we honor that commitment with this 
legislation.
  H.R. 2669 recognizes that we have an obligation to make sure that 
students have the maximum opportunity to take advantage of a college 
education and that they need access to that education, they need 
preparation for that education, they need success while they're there, 
and they need completion of their education. To do that we've made sure 
that, regardless of their background, that they will be prepared for 
college, they will have access to higher education, they will graduate 
to achieve their goals, and they will not be so burdened with 
unmanageable debt that that becomes a failure.
  The bill does that by, for low-income students, increasing the Pell 
Grant $500 over the next 4 years. This is a very significant increase 
in the Pell Grant. As many know, the President promised many years ago 
that he would have it up to $5,100, and the fact of the matter is it 
was at $4,050. They failed to increase the Pell Grants.
  It cuts in half the interest rates for subsidized loans for 
hardworking families that are going to borrow money, students that are 
borrowing money. We will cut their interest rates in half from 6.8 
percent to 3.4 percent. This will save the average student graduating 
with about $13,000 in debt, $4,400 over the life of that loan. We 
guarantee that those students who borrow this money, when they begin 
their time in the work world, they will not have to commit more, if 
they decide not to, to commit more than 15 percent of their income to 
pay back the loans so that they can enter those professions that may 
not have great starting wages, but over time in that career, they will 
build up income.
  We also provide, in keeping with the mandate, to try to provide 
highly qualified teachers in every classroom for students who are 
excelling in college and want to teach, if they make a commitment to 
teach in difficult public schools, we will provide $4,000 a year in 
tuition assistance while they're in school, not after they graduate, 
while they're in school, to a maximum of $16,000.
  For those students who go to college and they get their degrees and 
they want to enter professions and serve the public, they want to be 
first responders, they want to be nurses, they want to be firefighters 
and public defenders and prosecutors and special education teachers and 
early childhood teachers, we offer them a $5,000 forgiveness of their 
loans if they stay in that field for 5 years. We know that in each one 
of these areas there is a crisis in attracting people to those fields. 
Many in Congress, hundreds of Members of Congress, have co-authored 
legislation to provide loan forgiveness for some of these professions. 
This bill, in fact, funds that loan forgiveness for those individuals.
  We also increase the loan limits so that students will have greater 
access to more money to pay for the increasing cost of college and not 
have to go

[[Page 18512]]

to the private market, where they will be able to continue to take 
advantage of the subsidies provided in the Federal loan program.
  Mr. Speaker, I ask unanimous consent to proceed for 2 additional 
minutes.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. GEORGE MILLER of California. We also make a landmark investment 
in minority-serving institutions to make sure that those institutions 
that serve a disproportionate number of minority students are able to 
provide the services, to make sure that those students who are fully 
qualified to go to college, who are prepared to go to college, in fact, 
stay in college, so we don't have a continuation of the situation we 
had today where, all too often, because services aren't provided in 
college to help those students stay in college, those students end up 
out of college, no diploma and a lot of debt. And we want to make sure 
that that, in fact, doesn't happen.
  So today this legislation provides a great deal of promise and a 
great deal of assistance and a great deal of resources to those 
students and their families who are sitting down figuring out how 
they're going to pay for this college education that is so incredibly 
valuable today if you're going to fully participate in the American 
economic system, if you're going to participate in our democratic 
society.
  This is a very, very important piece of legislation. This is 
legislation that is designed to help these students be able to pay for 
that education.
  We do something else in this legislation. We set up a partnership 
where we go to the private sector, to wealthy individuals, to 
corporations, to foundations, and we tell them for every dollar that 
they'll put up to pay for essentially a Pell-eligible student to 
complete their education without going into debt, we will match them 50 
cent on the dollar.
  We are told by those individuals who have actively been participating 
in raising money for these students that this should allow them to 
raise hundreds of millions of dollars additionally because of that 
match; to have that public/private partnership pursuing one of the 
great goals of this great democratic society, which is to make sure 
that a student from any part of American society who's prepared to go 
to college can, in fact, go to college.
  So we not only have the government helping them out, we also have 
private citizens, corporations, philanthropic organizations, and in 
some cases even local governments if they decide this is good for their 
economy, and we will provide a match to help them do that.
  This is a comprehensive bill. It recognizes the complex needs of 
families and students to gain access to college, to pay for college, 
and to succeed in their employment afterwards; and I would urge my 
colleagues to support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McKEON. Mr. Speaker, I also ask unanimous consent for 2 
additional minutes.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. McKEON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in opposition to H.R. 2669, the cleverly titled 
College Cost Reduction Act. And what I would like to encourage my 
colleagues to do, in listening to this debate, is try to find what in 
this bill actually will cut or lower the cost of a college education.

                              {time}  1230

  There will be a lot of talk about cutting subsidies to lenders. There 
will be a lot of talk about lowering student interest rates, which 
actually then is paid to graduates of college, but what are we doing to 
hold down the cost of a college education? The cost of higher education 
has been going up more than four times the rate of inflation for the 
last 20 years, and we have not done anything to lower those costs.
  This bill allegedly has been crafted to balance fiscal responsibility 
with significant new aid for college students and their families. In 
fact, the majority touts the bill as the most substantial package of 
new benefits since the GI bill. But under the microscope, it is clear 
that these claims fall completely flat.
  In reality, this legislation is nothing more than a Trojan Horse for 
new entitlement spending at the long-term expense for American 
taxpayers. Even though we are considering this bill under the expedited 
procedure of budget reconciliation, which, as my colleagues know, is 
intended for real deficit reduction, this bill simply and shamelessly 
exploits the process. It cuts roughly $18.58 billion over 5 years in 
payments to student loan providers but simultaneously spends more than 
$17 billion during that same period on multiple programs, including 
nine new entitlement programs. So while they are talking about cutting 
mandatory spending, they are actually creating nine new entitlement 
programs, an apparent net savings of less than 9 percent.
  These new entitlements include grants to Native Alaskan, Native 
Hawaiian and other minority-serving institutions, grants to 
institutions with low tuition, grants to institutions to create new 
teacher preparation programs, grants to philanthropic organizations, a 
new mandatory Perkins loan program, cooperative education grants, and 
on and on and on. These sound like wonderful things, and I think what 
we are really seeing is that Democrats are Democrats. Give them an 
opportunity to spend money, they can't help themselves.
  History has proven that once Washington, DC creates a new entitlement 
program, it never ever dies. In other words, taxpayers will foot the 
bill for this onslaught of new entitlement spending for years to come. 
These same students that will be given some savings through some of 
these special entitlement programs eventually are going to have to pay 
for them in higher taxes that they will provide later. During that 
time, it will certainly dwarf the token ``savings'' found in H.R. 2669.
  It should be noted, too that much of this new entitlement spending is 
aimed at colleges, universities and philanthropic organizations, which 
we have never done before. The Federal Government has been sending 
Federal money to the students directly. Now they are sending it to 
organizations rather than to the students. This represents a historic 
departure from the intent of Federal student aid programs. As long as 
the Higher Education Act has existed, student aid entitlement dollars 
have been targeted towards students themselves. It is lost on me how 
sending these funds to institutions rather than to the students 
attending them helps more Americans pay for college. I doubt that we 
will see any reduction in tuition rates when they get this new money. 
But that is just what H.R. 2669 aims to do.
  What is more, Mr. Speaker, other proposals included in this bill, 
such as the interest rate cut for certain college graduates included in 
the ill-fated Six for '06 legislation passed earlier this year, will 
have even more explosive long-term costs that could amount to tens of 
billions more in Federal Government spending. Who will be paying for 
it? You guessed it. The American taxpayers. And don't forget the cut to 
interest rates would not aid a single college student. Only graduates. 
Rather, the benefit would be aimed squarely at those who by definition 
no longer attend college. While the intent of this new spending is 
admirable, it is equally misdirected.
  Mr. Speaker, President Bush has threatened a veto of this 
disingenuous legislation and for good reason. With billions in new 
programs, most of which are directed toward institutions and graduates 
rather than students, those who really need the help to get into 
college and stay in college to get on the ladder to achieve the 
American Dream, this bill marks the first step towards an explosion in 
new, unchecked entitlement spending and another unfortunate step toward 
further hyperinflation in college costs.
  Indeed, the measure before us overreaches by creating new entitlement

[[Page 18513]]

spending for every conceivable constituency in higher education. It 
overreaches by failing to focus on the historical Federal roll in 
higher education supported by Democrats and Republicans alike: helping 
low-income students. And it overreaches by extracting too much out of 
the Federal Financial Aid Program, which has been a success by all 
measures.
  I cannot support it, and I ask my colleagues to join me in 
opposition.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from Iowa (Mr. Loebsack).
  Mr. LOEBSACK. Mr. Speaker, I thank the gentleman from California for 
yielding.
  I rise today in strong support of the College Cost Reduction Act of 
2007, and I thank Chairman Miller for his impressive work on this 
legislation.
  As a result of this legislation, Iowa students and families will 
receive $232 million over 5 years in additional benefits in the form of 
student loans and Pell grants. Almost 77,000 students will benefit from 
the eligibility expansion and Pell Grant increase in this bill.
  I am also very pleased that an amendment that I offered in committee 
to allow part-time students and students in certificate programs to 
participate in the year-round Pell Grant program and accelerate their 
studies was accepted.
  As a long-time teacher at Cornell College in Iowa, I regularly 
encountered students struggling to afford their education, and I am 
certain that this bill makes the right investments at a critical time 
for our students.
  I urge my colleagues to support this bill, and I strongly support its 
passage.
  Mr. McKEON. Mr. Speaker, I yield 5 minutes at this time to the 
gentleman from Wisconsin, the ranking member of the Budget Committee 
(Mr. Ryan).
  Mr. RYAN of Wisconsin. I thank the ranking member for yielding.
  Mr. Speaker, the student aid bill that passed out of the Committee on 
Education and Labor is nothing but a Trojan Horse for new spending. In 
fact, the bill creates nine, count it, nine new entitlement programs 
and abuses the protection of reconciliation procedures through token 
budgetary ``savings.'' It also favors the government-controlled and 
costly direct lending program over the nonprofit and commercial 
lenders, promoting a back-door expansion of taxpayer-financed student 
support and a substantial increase in taxpayer liability.
  I want to make four basic points, Mr. Speaker: Number one, budget 
experts have unequivocally warned Congress, experts from the left and 
from the right and center and everywhere else, that the unrestrained 
growth in entitlement spending programs is the most fundamental 
challenge and the largest threat to our Nation's long-term economic 
health. Comptroller General David Walker refers to the rising costs of 
entitlements as a ``fiscal cancer'' that threatens ``catastrophic 
consequences for our country'' and could ``bankrupt America.'' Despite 
all of these warnings, the majority not only failed to address the 
problem in their budget; they are choosing to make the problem even 
worse by creating nine new entitlement programs in this bill alone. 
That is nine new entitlement programs and nothing, not a zilch, of 
reforms. They're not expanding. They're not replacing. They are 
creating nine new entitlement programs. While the bill claims that some 
of these programs will sunset, we all know entitlement programs, once 
created, never die.
  Second, this creates a new mandatory Pell Grant program. Among the 
new entitlement programs created is an unprecedented mandatory Pell 
Grant. The Pell grant is a great program, and under Republican 
leadership, we saw a tripling of Pell Grants from the year 1996 to 
2006. Suddenly, this authorizing committee doesn't think that it is 
enough, and it is planning on taking the committee away from the 
appropriators into their jurisdiction, making an entitlement which, in 
my opinion, reduces congressional oversight.
  Third, this contains no meaningful reform whatsoever. The bill 
contains none at all. It represents business as usual for existing 
programs, except that interest rates and limits in existing programs 
are changed to make room for more spending. Rather than maybe putting 
the savings in special education or deficit reduction to fund an 
unfunded mandate in local schools or reducing our deficit, it creates 
all of these new programs and this new spending. They will add from $15 
billion to $32 billion in spending over the next 5 years alone on top 
of the already unsustainable entitlement costs we are facing today. 
Instead of reducing long-term spending, they are using a vehicle 
originally intended to limit spending to do just the opposite, to fund 
these new programs.
  This bill gets Fast-Track legislation under the guise of deficit 
reduction, under the guise of controlling spending. Yet what we see 
here today is a bill that takes $18.58 billion from student loan 
providers only to spend more than $17.13 billion on new entitlement 
programs. The savings of this bill is 9 percent, a net savings of 9 
percent.
  Look at these two bars on the chart next to me. Does it look like the 
savings are anywhere near the new spending level, or does it look like 
a sliver of savings is being used to abuse the process of expedited 
reconciliation protection so they can create all of these new programs?
  I offered an amendment in the Rules Committee that would have 
required that the bulk of these savings be going toward deficit 
reduction. It is the same amendment that Senator Kent Conrad, the 
chairman of the Senate Budget Committee, offered and was passed by 
unanimous consent on the Senate floor. I couldn't even get this 
amendment past the Rules Committee, much less on the floor of the 
House.
  There is one last point, Mr. Speaker, that bears repeating, and that 
is, this favors government over markets. It increases taxpayer 
liabilities. It favors a government-controlled and costly direct 
lending program over nonprofit and commercial lenders, promoting a 
back-door expansion of taxpayer-financed student support. As students 
are pushed toward the government monopoly, the student benefits and 
services provided by nongovernment lenders to attract business would be 
lost. Further, the government-run program only handles 20 percent of 
the loans today. It would be overwhelmed with the new business and shut 
done, as it has been in the past, when large volumes shifted to the 
program.
  I just want to finish with one quote from the Democrat chairman of 
the Budget Committee: ``The reconciliation instruction that led to this 
bill'' we are seeing here today is a ``stalking horse for a significant 
expansion of spending.''
  Please join me in opposing this back-door expansion of new 
entitlement spending. Let's use budget reconciliation for what it was 
made for, reducing the deficit and controlling spending, rather than 
creating nine new entitlements.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield for the purpose 
of making a unanimous consent request to the gentleman from Texas (Mr. 
Gene Green).
  Mr. GENE GREEN of Texas. Mr. Speaker, I rise in support of the 
College Reduction Act of 2007, and I thank the chairman and the 
committee for bringing this bill to the floor. I think it is a great 
step forward for our college students.
  This important piece of legislation will strengthen the middle class 
by making college more affordable in several ways at no additional cost 
to taxpayers.
  First, it will increase the maximum Pell grant scholarship by at 
least $500 over the next 5 years, and expand student eligibility for 
other grants like the National SMART grant. Both of these things will 
increase the purchasing power for students who otherwise would not be 
able to afford going to college.
  In Texas alone, over 475,000 students will benefit from a $500 
increase in the Pell grant.
  In addition, this bill will cut interest rates on need-based Federal 
student loans from 6.8 percent to 3.4 percent over the next 5 years.
  All of this will be done at no additional cost to the taxpayers by 
cutting excess subsidies paid by the Federal Government to lenders in 
the student loan industry.

[[Page 18514]]

  Four of the six offsets were already approved by the House this year, 
when it overwhelmingly voted to pass the College Student Relief Act of 
2007 this past January.
  During the past few years, student lenders have been able to increase 
their efficiencies through market-driven mechanisms, but the 
Government's subsidization has continued unchecked.
  The Congress has a chance to help the American people at no 
additional cost for the taxpayer. How can we resist doing this?
  In our district, financial barriers often inhibit the ability of high 
school graduates to go to college.
  By reducing student loan interest rates and increasing Federal 
grants, we are encouraging families and students to get a college 
education.
  When we pass this legislation, we are investing in the future of our 
economy, because we will have more college graduates with a lower debt 
burden. This will enable graduates to do things like buy homes, invest, 
and fuel our economy.
  This is such a critical bill, and it's important that this body 
approach this bill in a manner that shows bipartisan support for 
educating our children.
  I urge my colleagues to support this bill.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from Maryland (Mr. Sarbanes).
  Mr. SARBANES. I thank the chairman for yielding time.
  Mr. Speaker, I rise today to speak in support of H.R. 2669, the 
College Cost Reduction Act of 2007, which would provide the most 
significant investment in higher education since the GI bill. I 
strongly urge my colleagues to support this legislation, and I thank 
Chairman Miller for his leadership.
  What we do here in Congress does matter. It does matter to ordinary 
people and to the average American. I was struck by an article in USA 
Today earlier this year about a family whose daughter was pursuing an 
undergraduate degree in art. Despite the fact that their daughter 
received scholarships to cover about a fifth of her cost, this family 
had to clean out their emergency savings account and their college 
savings fund and then borrow from the family's 401(K) plan. Still their 
daughter will graduate with $45,000 in loans. That's just not right. It 
doesn't have to be that hard. And it won't be that hard if we pass the 
College Cost Reduction Act, which cuts interest rates for student 
loans, provides fiscally responsible and targeted loan forgiveness, and 
increases and expands the Pell Grant program.
  I was thrilled to be able to work with Chairman Miller and others on 
the committee to ensure provisions that would advance loan forgiveness.
  This is a terrific bill, and I urge my colleagues to support H.R. 
2669.

                              {time}  1245

  Mr. McKEON. I am happy to yield 4 minutes to the gentleman from 
Texas, chairman of the RSC (Mr. Hensarling).
  Mr. HENSARLING. I thank the gentleman for yielding.
  Mr. Speaker, this might possibly be the single most fiscally 
irresponsible bill to come to the floor this year, and it has had a lot 
of healthy competition. Why? Because this bill would create nine, count 
them, nine, Mr. Speaker, new entitlement programs.
  Now, Mr. Speaker, we all know what entitlement programs are; 
sometimes the American people don't. These are the programs that we put 
on automatic pilot that get very little oversight. And these nine new 
entitlement programs are going to be on top of almost 10,000 other 
Federal programs that are already on the books. And we know that it is 
entitlement spending that is threatening future generations and 
threatening their educational opportunities.
  As the ranking member on the Budget Committee, the gentleman from 
Wisconsin talked about, we've heard from our chairman of the Federal 
Reserve, ``Without early and meaningful action to address the rapid 
growth of entitlements, the U.S. economy could be seriously weakened, 
with future generations bearing much of the costs, costs that could 
have been used for their educational opportunities.''
  We've heard from Comptroller General Walker, ``The rising costs of 
government entitlements are a fiscal cancer that threatens catastrophic 
consequences for our country and could bankrupt America.'' And what 
does this bill do, Mr. Speaker? It ignores this greatest fiscal threat 
to our Nation, a threat to educational opportunities, and dumps nine 
new entitlement spending programs on top of it.
  Now, I have no doubt that the bill's sponsor will claim that this 
saves money, but it uses gimmicks. It claims that these entitlements 
will expire. Well, Mr. Speaker, we see Haley's Comet more frequently 
than we ever see an entitlement program expiring in the Nation's 
Capitol. It's got interest rate snapbacks. And we all know that once 
these entitlement seeds grow, the cost will be borne by future 
generations.
  One thing I want to make very clear, Mr. Speaker, is that the worst 
part of this program is that it will ultimately lessen educational 
opportunities for hardworking American families. And it will because it 
is all part of a Democratic spend-and-tax program. Programs like these 
necessitate the largest single tax increase in American history, which 
they put into their budget, which takes away from families' 
opportunities to spend on their educational opportunities.
  I heard from Melanie in Chandler, Texas, who's in my district. She 
wrote, ``Congressman, if I have to pay more taxes, then I can't afford 
to go to school. If taxes are raised, I won't have a choice but to quit 
school and go back to work.''
  I heard from Rose in Garland, Texas, also in my congressional 
district. ``I'm a divorced mother with a child in college and a child 
in daycare. An increase in taxes would wipe out hope of the first 
college graduate in the family.''
  I heard from Bruce in Garland. ``In my particular case, an additional 
$2,200 in taxes would cut into the finances I use to pay for my son's 
college education. I really believe that given more money, Congress 
will spend more money, so that is not the answer. A control in 
reduction of spending is what is needed.''
  Now, Mr. Speaker, there are very few opportunities that are as 
wondrous and as fundamental to the American Dream as education. And so 
I want to make it very clear again today, we're not having a debate 
over how much we're going to spend as a Nation on education, but we are 
having a very fundamental debate on who does that spending.
  This bill, brought by the Democrat majority, would put all of the 
control in government. It would reduce opportunities. It would reduce 
choice. It would reduce innovation for families trying to finance 
education. And ironically, as part of the largest single tax increase 
in American history, it takes money away from families. But if people 
beg for it, maybe they'll get a little bit of it back.
  We should reject this bill.
  Mr. GEORGE MILLER of California. I yield myself 15 seconds to say, 
it's most interesting to sit here and be lectured by people who, when 
they controlled every department of government, every branch of 
government, they took a $5 trillion surplus that they inherited from 
the Clinton administration and immediately turned it into a $3 trillion 
debt that this Nation now is carrying around as it tries to compete in 
the world. To be lectured by mindless spenders like that is really a 
treat on this floor.
  Mr. Speaker, I yield 1 minute to the gentleman from New York (Mr. 
Bishop).
  Mr. BISHOP of New York. I thank the gentleman for yielding.
  Mr. Speaker, I have many good things to say about this bill. I urge 
my colleagues to support it, but let me focus on a couple of quick 
things.
  First, it is a long overdue and much-needed infusion of support for 
Federal need-based financial aid programs. It raises the Pell Grant 
maximum from $4,310 to $5,200 over a period of years. It increases the 
Federal capital contribution for the Perkins loan program, a program, 
by the way, that this administration seems intent on killing, and it 
increases loan limits so that students will have access to greater 
support.

[[Page 18515]]

  In doing all of those things, we help students avoid what has become 
termed the ``wild west'' of student lending, that is, the private loan 
market. We have driven students to the private loan market because we 
have not properly supported the programs that currently exist. And with 
these increases, we will be properly supporting those programs.
  And lastly, the reduction in the interest rates has been 
characterized by the other side as not affecting access or 
affordability and, in fact, it does. Students make decisions about the 
schools that they are going to attend by virtue of their anticipated 
indebtedness, and we address that.
  I urge my colleagues to support this bill.
  Mr. McKEON. Mr. Speaker, might I inquire as to how much time is 
remaining.
  The SPEAKER pro tempore. The gentleman from California has 17 
minutes. Mr. Miller from California has 21\3/4\ minutes.
  Mr. GEORGE MILLER of California. I yield 1 minute to the Democratic 
leader.
  Mr. HOYER. I thank the chairman for yielding, and I want to 
congratulate the chairman. There is nobody in this body who has served 
longer with more focus on the quality of education, the access to 
higher education, and whether we're dealing with primary, secondary or 
higher education, more concern than George Miller of California, and I 
congratulate him on the service that he has given.
  I also want to congratulate the ranking member, who himself has been 
an outspoken advocate of education quality in America.
  Let me say, before I start my remarks, that I'm always interested to 
hear the comments of the ranking member of the Budget Committee and of 
the leader of the Republican Study Committee. I'm interested to hear 
their remarks because of course they have both said nine new 
entitlements. I was here with both of them for 3 hours one night, from 
3 a.m. to 6 a.m. in the morning, and we enacted the largest entitlement 
that has been enacted since the 1960s, and we were told that was going 
to cost $395 billion by the administration. The administration did not 
tell us the truth, and they knew they were not telling us the truth. 
And the person who knew the truth was prohibited by the administration 
from giving us the truth on pain of being removed, a civil servant, not 
an administration appointee. He knew the cost of that program, as he 
projected it, was $524 billion, or $125 billion more than we were told 
on this floor. But it was told $395 billion additional entitlement.
  Now the interesting thing is that Mr. Ryan and Mr. Hensarling both 
voted for that program. That program has a larger unfunded liability as 
of this day than Social Security. So I think the lecture on fiscal 
responsibility is, frankly, not well taken.
  Mr. HENSARLING. Mr. Speaker, will the gentleman yield?
  Mr. HOYER. I would be glad to yield to my friend.
  Mr. HENSARLING. Did the gentleman support the Democrat alternative 
that cost even more, as scored by CBO?
  Mr. HOYER. The gentleman, of course, is not on this floor lamenting 
the creation of entitlements as is my friend from Texas, so I suggest 
your question is inappropriate because your concern is about 
entitlements. But you voted for an entitlement that was the largest 
entitlement passed on the floor of this House in four decades, about as 
long as I think the gentleman has been alive. I wish that I could say 
the same; unfortunately, I've been alive a lot longer than that. So I 
think the question begs the question, my friend.
  But let me say about this landmark legislation, the College Cost 
Reduction of 2007 is yet another example of how this Democratic 
Congress is committed to moving our Nation in a new and better 
direction and working on behalf of the American people.
  In short, this legislation will provide the single largest investment 
in college financial aid, and about $18 billion over the next 5 years. 
Now, that is about one-fifteenth of the mistake that was made in the 
entitlement that you supported, my friend. And it's the largest since 
the GI Bill was funded in 1944. The GI Bill was an entitlement. And 
very frankly, the Greatest Generation was worth investing in. And that 
investment has paid off 100 fold in the economy that this Greatest 
Generation built in America, and it will do so in this case as well. 
And it does so at no new cost to the American taxpayer by cutting 
excess subsidies paid by the Federal Government to lenders in the 
student loans industry. The administration suggested $16 billion. We're 
a little above that. So there is not a disagreement as to whether or 
not there is an overpayment here; it's a question of where you're going 
to put your money. In fact, it includes a $750 million, not a lot of 
money in the scheme of billions of dollars and trillions of dollars, 
reduction in the deficit.
  A few months ago Bill Gates, the chairman and cofounder of the 
Microsoft Corporation and one of our Nation's great innovators, wrote 
in the Washington Post, ``If we, the United States, are to remain 
competitive, we need a workforce that consists of the world's brightest 
minds.'' That's what this bill seeks to enhance. Mr. Gates added, 
``Education has always been the gateway to a better life in this 
country.''
  Mr. Speaker, this legislation not only recognizes that education is a 
key to personal development, fulfillment and success, but also, and 
critically, a crucial factor in our national competitiveness, our 
continued prosperity, and yes, I suggest to all of my colleagues, our 
national security.
  Simply stated, this legislation will make a college education more 
affordable for millions of students and their families. The fact is, 
college tuition today is exploding. Tuition at 4-year public colleges 
has grown by 35 percent in the last 5 years. Let me say in my State of 
Maryland, tuition cost has gone up 43 percent in the last 4 years. 
America cannot afford to shut people out of the access to college 
education if we're going to be successful in world markets in a flat 
world, as Tom Friedman refers to it. Too many students graduate with 
tremendous debt, and too many others simply don't go to college because 
they cannot afford it. To address this situation, this bill will 
increase the maximum Pell Grant scholarships by at least $500 over the 
next 5 years. That will not come close to what the Pell Grants 
initially, when they were adopted, replaced in tuition costs, about 70 
percent. We're now down to 30 percent. When combined with other Pell 
scholarship increases proposed by Congress this year, the maximum Pell 
Grant will reach $4,900 in 2008, $5,200 in 2011, up from $4,050 in 
2006. Notwithstanding, the President in 2000, in his campaign, said he 
was going to increase the Pell Grant very substantially. It doesn't 
happen.
  The bill also will cut interest in half on subsidized student loans 
over the next 5 years, and it will guarantee that borrowers will not 
have to pay more than 15 percent of their discretionary income to loan 
repayments. In addition, this bill seeks to ensure highly qualified 
teachers in every classroom, a critical need in our Nation, by 
providing up-front tuition assistance to qualified students who commit 
to teaching in public schools in high-poverty communities or high-need 
areas. That is important for our country's ability to compete and to 
develop every mind in America. There is not a child to waste in 
America. We know that.
  It encourages and rewards public service by providing loan 
forgiveness for first responders, law enforcement officers, 
firefighters, nurses and others. And it encourages landmark new 
investment, $500 million guaranteed over 5 years, for Historically 
Black Colleges and Universities, Hispanic-serving institutions, and 
tribally controlled, native or predominantly black institutions.
  Mr. Speaker, this legislation is a very significant and important 
step toward realizing the goal of making college affordable for every 
qualified student.

[[Page 18516]]



                              {time}  1300

  I want to congratulate Chairman Miller once more and the staff and 
all of the members of the committee and Mr. McKeon for the positive 
role, whatever position one might take for or against, the positive 
role that the committee has played. It is a historic investment in our 
people and our Nation. I urge every Member to strongly support this 
legislation.
  Mr. McKEON. Mr. Speaker, I yield 3 minutes to the gentleman from 
Georgia (Mr. Westmoreland).
  Mr. WESTMORELAND. I thank my friend for yielding.
  Mr. Speaker, I don't know how I am always so lucky, or unlucky, I 
guess, to speak after the majority leader's minute, which is probably 
the longest minute I have ever seen. But to listen to him talk, you 
know, this weekend I bought a TV from somebody that was as good a 
salesman as Mr. Hoyer. I didn't need the TV. It was too expensive, and 
I really didn't want it. But after talking to the salesman, I ended up 
thinking I needed it and I could afford it and it was what I needed. So 
I bought it.
  Mr. Hoyer and I have had this conversation on the floor before, and 
that is that you can fool some of the people some of the time, but you 
can't fool all of the people all of the time. So the American people 
were sold a bill of goods last November, and they are continually being 
sold things in this Congress.
  I come from Georgia. We have the HOPE scholarship, Mr. Speaker, one 
of the greatest tools for education that I think has been done. It 
comes from a lottery, which a lot of people oppose, but a lot of young 
people in Georgia are now able to go to college. What we found in 
Georgia was that when the State started paying for the college tuition, 
that the tuition went out of sight. It was another funding means for 
these institutions of higher education to charge more.
  Now, the majority leader said that tuition in Maryland had gone up 43 
percent in 4 years. Well, if he thinks that is something, wait until 
this bill passes. Because what is going to end up happening is that 
when the government starts loaning the money and paying for this, those 
tuitions are going to skyrocket, because the people that are getting it 
don't really care how much the tuition is.
  Let me say this: When I bought this TV that I didn't need, that I 
couldn't afford, I got down to the bottom dollar of what I thought that 
I could afford. Of course, this great salesman walked away because he 
said, do you know what? If I can't make some money, I am not going to 
do this. We ended up negotiating. What ended up happening is that I 
paid up more than what I wanted to. He took less.
  But a bank is not going to loan money if they can't make money. We 
hear a lot of back and forth on this floor. We don't know who to 
believe and who not to believe. Let me tell you the truth. If a bank, a 
lending institution, cannot make money, they are not going to do 
business with people. So the reality is that the private sector is 
going to get out of making these loans, which is probably the last stop 
we have of having any type of accountability to it. The government is 
going to start doing it all. If the banks will not loan it at this 
interest rate because they are losing money, and the government will, 
then that means, again, here is the thing, if we continue to govern our 
political correctness, the taxpayers end up holding the bag. They are 
going to end up holding the bag on this.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentlewoman from California (Ms. Pelosi), the Speaker of the House.
  Ms. PELOSI. I thank the gentleman for yielding. I thank you, Mr. 
Chairman, for your great leadership in bringing us to this historic 
day. I thank all of the other members of the committee for their 
leadership in making this day possible, for expanding America's middle 
class, for giving opportunity to America's children, and for making our 
future brighter.
  Mr. Speaker, I rise in strong support of the College Cost Reduction 
Act of 2007.
  In 1944, when the GI Bill of Rights became law, our Nation made a 
decision. They made a decision to invest in the future. It was an 
investment that transformed the lives of millions of Americans. It 
transformed America to the benefit of all Americans. Indeed, it built 
America.
  Over the years, the GI Bill offered opportunity and economic security 
through education to more than 20 million of the brave men and women 
who wore our Nation's uniform. It has given America hundreds of 
thousands of engineers, teachers and doctors, and it has given us a 
model for the value of investing in the education of our people for our 
country.
  Today, with this legislation, we will make the single largest 
increase in college aid since the GI Bill of Rights revolutionized 
America. It is an investment for a bright future for our children, and, 
just as the GI Bill has been, an investment in a bright future for our 
Nation.
  Any economist will tell you that any dollar spent on education is a 
dollar that makes a big return to our Treasury. In fact, no dollar 
invested or spent, no tax credit, no financial initiative you can name 
brings more money to the Treasury than investing in education.
  I want to again thank Chairman Miller and the distinguished members 
of the Education and Labor Committee for their leadership in making 
sure higher education is affordable and accessible.
  In today's competitive job market, a college education often makes 
all the difference. Americans with college degrees can earn 60 percent 
more than those with only a high school diploma. So in the interests of 
individuals, this is very, very important. Indeed, higher education is 
the single best investment our young people can make in themselves, 
that families can make in the success of their children, and our 
country can make in its future strength.
  It is important to note why this legislation is very important. 
Financial barriers will prevent 4\1/2\ million high school graduates 
from attending a 4-year public college over the next decade and prevent 
another 2 million high school graduates from attending any college at 
all. Over 6\1/2\ million students will not have access to some college 
or any college at all.
  Higher education, as we all know, is the key to achieving the 
American dream. This legislation has made sure that all who are 
qualified and determined to have that education will have access to it.
  It has been said that cutting interest rates in half will make it 
possible for more Americans to achieve their potential. This is 
especially important for strengthening the middle class. Middle-income 
families in America struggle to educate their children. This interest 
rate cut is very important for them. By increasing the maximum Pell 
Grant scholarship by over $500, nearly 6 million students will be given 
help to afford expanding college costs.
  In hearing the debate on the cost, I think that it is important to 
note that the cost of this bill is the equivalent of 6 weeks in Iraq; 6 
weeks in Iraq. Imagine that, for 6 weeks in Iraq, we can expand higher 
education to all who wish to achieve it in America. That investment has 
a return to our Treasury. It will grow our economy and prepare us for 
the future.
  This legislation is a very important part of our Innovation Agenda, 
where we do need to invest in many more scientists, engineers and 
mathematicians. By giving opportunities to highly qualified teachers in 
our classrooms for this Innovation Agenda, it provides an essential 
component for a bright future for our Nation. It will provide up-front 
tuition for highly qualified teachers who agree to teach in high-needs 
areas, increase loan forgiveness for those who practice civic 
responsibility and encourage students to give back to their communities 
as teachers, librarians, childcare and welfare workers and public 
sector employees.
  Members have talked about this over and over again. The fact is that, 
again, for the cost of 6 weeks in Iraq, we can ensure the education of 
our young people across the broad spectrum of America. We can reward 
those who want to be civically involved as teachers. It is all paid 
for.

[[Page 18517]]

  Today, we are not only relieving the debt of America's students, but 
doing so in a way that not only helps relieve their debt but does not 
heap mountains of national debt on top of our young people. This 
legislation keeps our promise to pay as you go with no new deficit 
spending. Democrats believe that is just as essential as ensuring that 
American students have the opportunity to attend college.
  Mr. Speaker, the College Cost Reduction Act strengthens the future 
for our students and it strengthens our Nation. I think, again, that 
this is a historic day, because it is a day that is about the American 
dream. It is a day about expanding opportunity in our country. It is a 
day that recognizes that the best dollar that we can spend is a dollar 
spent on education. It recognizes that education is the key to a 
brilliant future, not only for the self-fulfillment of our people, but 
for the success of our country. It is about our self-fulfillment 
personally. It is about growing our economy. It is about our National 
security. It is about carrying the banner of our Founders who have made 
a commitment to future generations.
  Thank you, Chairman Miller, and members of the Committee on Education 
and Labor, for helping us honor that commitment to future generations. 
I urge our colleagues to support this very important and historic 
legislation.
  Mr. McKEON. Mr. Speaker, I yield 3 minutes to the gentleman from 
Michigan (Mr. Walberg), a member of the committee.
  Mr. WALBERG. Mr. Speaker, today I rise in strong opposition to this 
cleverly entitled College Cost Reduction Act of 2007. Under the guise 
of saving money and paying down the deficit, Democratic leaders are 
using the budget reconciliation process as a vehicle to create a host 
of expensive new Federal bureaucracies rather than making tough 
decisions to restrain entitlement spending and balance the Federal 
budget.
  Mandatory spending programs consume the largest portion of the 
Federal budget, and their share will only increase as Social Security 
and Medicare costs explode in coming years. Unfortunately, this action 
comes as no surprise. After reclaiming the majority under the claims of 
fiscal accountability, House Democrats have already voted to approve a 
massive $400 billion tax increase on working families and small 
businesses, and may I add, that amounts to over $3,000 on average tax 
increase for these students who we are attempting to help.
  Now we are considering a piece of legislation that will create nine 
new entitlement programs resulting in $18 billion in new spending. The 
explosion in new, unchecked entitlement spending is another unfortunate 
step backwards for the American taxpayer. I agree that Congress must 
remain committed to ensuring affordable access to post-secondary 
education. But instead of focusing the bulk of need on increasing 
access to higher education for low-income students, the bill increases 
aid to colleges and universities at the expense of students who receive 
Pell Grants. H.R. 2669 only targets $4.9 billion towards Pell Grants, 
increasing the maximum award by only $100 per year for 5 years. Pell 
Grants have proven to be effective in helping low-income students 
attain higher education. This bill will not prioritize Pell Grants.
  I do wish to take a moment to thank Chairman Miller for working with 
me to remove section 201 of his bill in his manager's amendment. I was 
happy to work with our State's Governor to make this change. This 
action withheld funds from the Leveraging Education Assistance 
Partnership, known as the LEAP, if a State reduced the average amount 
of funding it has provided over the last 5 years. This so-called 
maintenance of effort provision is a bold and unprecedented overreach 
of Federal authority designed to dictate State budgets.

                              {time}  1315

  This is particularly true because the Federal Government provides 
little direct assistance to States or higher education institutions. 
Low-income and financially needy students should not have to struggle 
because of a State's budgetary shortfalls. My home State of Michigan 
continues to suffer from a struggling economy and difficult choices 
must be made on how to most appropriately fund the State. However, 
needy students should not have critical financial aid yanked away 
because the State cannot afford the same financial commitment it has 
made to the LEAP program in more prosperous years.
  I was also prepared to offer an amendment to the House Rules 
Committee concerning the Upward Bound program. I appreciate that the 
chairman's manager's amendment removes a section that earmarked $30 
million for prior Upward Bound grantees who submitted low-scoring 
applications, bypassing 107 new applicants who submitted competitive 
proposals.
  But despite these small improvements, the College Cost Reduction Act 
contains dozens of poison pills that mark another step towards 
unchecked spending. I urge my colleagues to vote ``no'' on the so-
called College Cost Reduction Act.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from New Jersey (Mr. Andrews).
  Mr. ANDREWS. Mr. Speaker, a few minutes ago my friend from Georgia 
described buying something he didn't need at a price he couldn't 
afford. I want to thank him for giving us a perfect description of the 
last 7 years of the governance of this country under the Bush 
administration.
  We got a lot of things we didn't need: a war in Iraq, a misadventure 
in Iraq at a price we couldn't afford, $4 trillion in new debt under 
their watch. We got $12 billion a month in Iraq under their watch.
  This is something we do need and we can afford. Higher college 
scholarships for American students, lower school loan interest rates 
for American students. And it is paid for, unlike their massive 
spending increase, unlike their tax break giveaways to the wealthy, 
this does not increase the deficit by a dollar. We are changing their 
failed policy of buying things we don't need at prices we can't afford. 
They should vote for that change today.
  Mr. McKEON. Mr. Speaker, how much time remains?
  The SPEAKER pro tempore. The gentleman from California (Mr. McKeon) 
has 10\3/4\ minutes, and the gentleman from California (Mr. George 
Miller) has 18\3/4\ minutes.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1\1/2\ minutes 
to the gentleman from Illinois (Mr. Emanuel).
  Mr. EMANUEL. Mr. Speaker, today parents have a choice of a second 
job, a second mortgage, or dipping into their savings to help pay for 
their kids' college education, and that is the wrong choice to ask 
parents to make.
  In Illinois, tuition last year went up, increases of 14.5 percent, 
the fourth largest increase of any State in America. Today when a kid 
graduates from college, they graduate with an average of $15,000 of 
debt. So on the front page they get a diploma, and on the back side, 
they get their first credit card bill. That is the wrong choice for 
America.
  You could not write the American decade if you didn't look at the GI 
bill and making a high school education universal in America. Those are 
the two most significant economic acts of the last 100 years.
  My colleagues on the other side of the aisle noted two examples. One, 
they are worried about the deficit. After $4 trillion of new debt, I 
appreciate your conversion to concern about increasing the deficit, but 
there is no deficit spending here.
  Second, and most importantly, they talk about the importance of the 
Pell Grants. This is after, in fact, the President's budget cut Pell 
Grants one year $1 billion, and froze it for the last 3 years. We are 
doing the right investment. Not one of us would be in this institution 
if it wasn't for two things: the love of our parents and the access to 
a higher education. We are providing Americans something different from 
the last 6 years. Rather than slamming the door shut on their access to 
a college education, we are opening the doors and making the American 
Dream

[[Page 18518]]

possible. I compliment our leadership for bringing this bill and 
opening the doors of America's future with a good college education 
bill.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from Pennsylvania (Mr. Altmire).
  Mr. ALTMIRE. Mr. Speaker, when I was elected to the House of 
Representatives last November, I asked to serve on the Higher Education 
Subcommittee specifically so I could help make college more affordable 
for American families, and this bill does just that. It raises Pell 
Grant awards to their highest level in history. It cuts in half the 
interest rates students will pay on their student loans, and this bill 
rewards community service by providing loan forgiveness for those who 
choose careers in important fields like first responders, law 
enforcement, firefighters, and nurses.
  And we do all of this at no additional cost to the taxpayer. This 
bill is fully funded, and I am proud to have played a part in crafting 
this important legislation.
  Mr. McKEON. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
North Carolina (Ms. Foxx), a member of the committee.
  Ms. FOXX. Mr. Speaker, I want to thank the ranking member for giving 
me this time.
  I have sat here and listened to this debate on this bill, and I want 
to say we are back at dealing with hypocrisy again, as we have been on 
a daily basis.
  The College Cost Reduction Act, the title is not just a misnomer; it 
is an outright lie. Much of the $18 billion in new spending doesn't 
reduce the cost of college, but instead consists of new welfare 
targeted at people who aren't even students.
  And comparing this bill to the GI bill is truly, truly hypocrisy. We 
instituted the GI bill to help men and women who had fought for this 
country and returned to this country to help them get college education 
and get back into our culture.
  All this is going to do is increase the nanny state. What we are 
doing is taking away personal responsibility from people and giving 
them out and out payments for loans that they take out that they don't 
need to take out.
  Economists are not going to tell us that money spent on education is 
a good investment, and the government doesn't invest money. The 
government spends money. It is interesting to me that they brought out 
the big guns for this bill and they say it is no new cost to taxpayers. 
Well, every dollar we take away from taxpayers is a cost to them.
  Why is tuition up 43 percent? We are looking at the wrong issue. As 
long as the government keeps throwing money, then the institutions are 
going to keep expanding what they charge. I have used myself as an 
example before, but I know many people who have done this. They went to 
college and never borrowed a dime. They were as poor as could be.
  We should call this the new Democrat welfare bill. It is a Trojan 
horse. It is designed to fool the American people. We have used this 
analogy before. You can put lipstick on a pig, but it is still a pig, 
and that is what this bill is. There is no need for this. There is no 
need for people to go into debt to go to college in this country. There 
are all kinds of choices for people. All we are doing is taking money 
away from hardworking American people and creating new government 
programs.
  I am really concerned about the direction in which we are heading in 
this country. The Democrats have never seen a welfare program they 
didn't like. Republicans were able to decrease welfare costs when they 
took over in this body in 1995. This is another attempt by the 
Democrats to continue the welfare program.
  I want Americans to have access to education. I have worked in 
education all my life: school board member, university administrator, 
college president. I have dealt with low-income students. This is not 
the way to do it. We don't need a return to the nanny state.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself 15 
seconds to say that I find it unbelievable that Republicans would 
decide that families that are making every sacrifice to borrow money, 
and students that are making every sacrifice to borrow and pay back 
money, that somehow they are called welfare recipients. These are 
hardworking American families who are struggling to educate their 
children, and I want to disassociate myself from that kind of 
characterization of these families or these students.
  Mr. Speaker, I yield 1 minute to the gentleman from Rhode Island (Mr. 
Kennedy).
  Mr. KENNEDY. Mr. Speaker, I rise for a colloquy with the gentleman 
from California.
  As I understand, an important provision in this bill is a loan 
forgiveness program for individuals serving in high-need professions. 
One of those is child and adolescent mental health professionals.
  Do I understand the chairman in helping me secure this program in the 
overall bill so that we can bring more professionals into this area?
  Mr. GEORGE MILLER of California. Mr. Speaker, will the gentleman 
yield?
  Mr. KENNEDY. I yield to the gentleman from California.
  Mr. GEORGE MILLER of California. I want to thank the gentleman for 
bringing this to our attention, and we look forward to continuing to 
work with him on this issue.
  As he has pointed out to this committee and many Members of Congress, 
we in fact have a workforce crisis, and that is what we have tried to 
address in the loan forgiveness program in those professions that are 
not necessarily the highest paying in our society but are essential to 
the well-being of our society. We will work with the gentleman as this 
bill proceeds through the legislative process on this matter.
  Mr. KENNEDY. Suicide is the third leading cause of death for young 
people. Too many people are waiting in our juvenile detention 
facilities all across America. It is causing a disruption in education 
all across this country. We need more child and adolescent mental 
health professionals if we are going to have an education system, and I 
thank the gentleman for helping us get more of those professionals in 
the field so we can move forward with their education.
  Mr. GEORGE MILLER of California. I thank the gentleman from Rhode 
Island and look forward to continuing to work with him on this issue in 
this conference and also on the Higher Education Act.
  Mr. KENNEDY. I thank the chairman of the committee.
  I'd like to thank Chairman Miller for his leadership in bringing to 
the floor the largest single investment in college financial aid since 
the GI Bill.
  The bill we are considering here increases the maximum Pell Grant by 
$500. It will cut the interest rate on student loans in half.
  It provides loan forgiveness for college graduates that agree to 
teach in high-need areas and who agree to go into public service 
professions. It accomplishes all of that, and yet here is the best 
part: this bill saves the American taxpayers $750 million.
  By reducing the excessive subsidies that Congress has lavished on 
private lenders, lenders that we have seen in the news this year have 
acted unscrupulously time and again, Chairman Miller has more than paid 
for the investments he is making in our students.
  I know that my constituents in Rhode Island who take out Federal 
students loans will appreciate the $4,420 in savings this bill provides 
to them. And I also know that the rest of my constituents will 
appreciate the fact that this increase in student aid does not cost 
them one extra dime.
  When Democrats took control in Congress, we promised to cut student 
loan interest rates in half, while at the same time proceeding in a 
fiscally responsible fashion. Today, we are fulfilling that promise. I 
will be proud to vote in favor of this bill, and I urge my colleagues 
to do the same.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from Illinois (Mr. Hare), a member of the committee.
  Mr. HARE. Mr. Speaker, I rise in strong support of H.R. 2669, the 
College Cost Reduction Act of 2007. By passing this bill today, we make 
the largest single investment in higher education since the 1944 GI 
bill.
  College costs have grown nearly 40 percent in just the last 5 years, 
and too

[[Page 18519]]

many students have found themselves drowning in debt or, worse, unable 
to afford an education at all. I believe education is an investment, 
not an expenditure. This bill will increase our Nation's 
competitiveness and allow Americans from all economic backgrounds to 
achieve the dream of a college career.
  This act would make need-based student loans more easily accessible 
and provide for additional mandatory funding for the Pell Grant 
scholarship, benefiting nearly 230,000 students in my home State of 
Illinois.
  The bill also cuts the interest rate on subsidized student loans in 
half over the next 5 years and includes tuition assistance for students 
who teach in the Nation's public schools and loan forgiveness for 
college graduates who go into public service professions. I urge my 
colleagues to join us in supporting H.R. 2669.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from Massachusetts (Mr. Tierney).
  Mr. TIERNEY. Mr. Speaker, I thank the gentleman for acknowledging me. 
I am happy to rise in support of this bill here today. A conversation I 
heard a short while ago from my colleagues that there are some people 
in America who are taking welfare and don't need to have public 
assistance to go on to college are probably not thinking of the same 
America that I am thinking of.
  I am thinking of the America where college costs have gone up 41 
percent after inflation, and that is just for public higher education. 
I am thinking of the America where parents are working two jobs on many 
occasions, the students are working, and they still can't afford the 
cost of a public higher education.
  I am thinking of the America that has not raised the value of a Pell 
Grant for many, many years, and we have a chance here to do just that. 
I am looking at a bill and supporting a bill that in fact will raise 
the Pell Grants, is going to lower the interest rate on student loans, 
both of which are necessary for many, many families in this country. I 
am talking for businesses as well as families. This is a chance not 
just to help the individuals, but to help our economy.
  We all are very happy to talk about the need, to really have the 
college-educated populace out there so we can be competitive globally. 
This is our opportunity to put our money where our mouth is. This is a 
good piece of work. I congratulate the chairman for getting this 
through and look forward to passing this bill in the whole House.

                              {time}  1330

  The SPEAKER pro tempore. The gentleman from California (Mr. George 
Miller) has 13\1/4\ minutes remaining. The gentleman from California 
(Mr. McKeon) has 7\3/4\ minutes remaining.
  Mr. McKEON. Mr. Speaker, I yield 3\1/2\ minutes to the gentleman from 
Wisconsin (Mr. Petri), a senior member of the committee.
  Mr. PETRI. Mr. Speaker, I thank my colleague, and I'd like to share 
an alternative Republican viewpoint on the bill before us this 
afternoon. Traditionally, Republicans have stood for budgetary 
responsibility and competition to ensure a good return on taxpayer 
investment in Federal programs. I believe that this bill, while not 
perfect, is something that any Republican who stands for these 
principles should support.
  For many years, I have spoken out against the excess subsidies that 
taxpayers pay to lenders in the guaranteed loan program. Government and 
private economists, including those in the Office of Management and 
Budget, the Congressional Budget Office, the Government Accountability 
Office and the Treasury Department, have all confirmed the significant 
inefficiencies in the program due to the arbitrary and capricious 
nature in which lender subsidies have been set over the last 40 years.
  In fact, these scorekeepers have found that taxpayers spend $3 to $5 
billion each year on unnecessary subsidies that could be better applied 
as direct aid to students. The status quo on lender subsidies is 
inefficient, wasteful and unacceptable, and I applaud the effort made 
in this bill to redirect these resources primarily as Pell Grants and 
interest rate reductions.
  This bill also contains two other critically important provisions 
that largely have been overlooked in this debate. First, it includes an 
amendment that I offered and which was unanimously adopted in committee 
to study and implement a pilot program using market-based reforms, such 
as auctions, to bring down the cost to taxpayers in the guaranteed loan 
program. The reason we find ourselves needing to redirect these 
subsidies in the first place is due to the fact that Congress set 
subsidy rates blindly and irresponsibly, not based on any market 
considerations.
  As a free-market Republican, I believe Congress has no business 
setting lender returns. Other mechanisms, such as auctions, will 
actually capture market demands to obtain the optimal rate for 
taxpayers and for lenders. Given the tremendous waste, fraud and 
unethical relationships that have been uncovered in this program over 
the last 6 months, it's clear that the guaranteed loan program is 
fundamentally and structurally flawed. This study and pilot are key to 
comprehensively reforming this program to ensure it serves students and 
taxpayers. And I'd like to thank the chairman and the committee for 
their strong support for this important effort.
  Further, this bill applies a small portion of the savings towards 
improving income-contingent student loan repayment. Earlier this year, 
I introduced the IDEA Act, H.R. 2465, to make key changes to our 
current, limited income-contingent loan repayment program. The bill 
would make this repayment model accessible to all borrowers and better 
address the growing debt burdens which our students are graduating 
with. Some of my colleagues may be surprised to learn that this 
repayment model was actually developed by free-market economist Milton 
Friedman as the optimal way for all students, no matter their income, 
to repay their student loans.
  The College Cost Reduction Act includes several provisions included 
in my legislation to improve this program, such as a 15 percent cap on 
adjusted income payments and moving the floor from 100 to 150 percent 
of the poverty level. These are positive first steps towards 
implementing a viable income-contingent repayment program, and I hope 
my colleagues will consider cosponsoring the IDEA Act to develop a loan 
repayment system for the 21st century.
  I thank my colleague for yielding me this time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentlewoman from California (Mrs. Davis), a member of the committee who 
had a major amendment in this legislation.
  Mrs. DAVIS of California. Mr. Speaker, I rise today in support of 
reducing the cost of higher education and increasing access for all of 
those who dream of attending college, and that includes, Mr. Speaker, 
our servicemembers.
  Our servicemembers face extraordinary challenges when activated to go 
to Iraq or Afghanistan while in college.
  Under current law, those deciding not to return to school must begin 
to repay the loan immediately after returning home, and this means, as 
we all know, that they will receive their student loan bills in the 
mail within days of returning from a combat zone.
  Among the other benefits in this bill, the College Cost Reduction Act 
includes an amendment to give those activated while in college a 13-
month deferment before they must begin repaying a student loan.
  This bill is important, and it's important for this reason, because 
it provides our servicemembers the protections and the rights they 
deserve when activated while in college.
  I urge my colleagues to support the overall legislation.
  Mr. GEORGE MILLER of California. Mr. Speaker, I thank the gentlewoman 
for her amendment, and I yield 1 minute to the gentlewoman from 
California (Ms. Woolsey) a member of the committee.

[[Page 18520]]


  Ms. WOOLSEY. Mr. Speaker, every single American, no matter what 
circumstances he or she comes from, deserves the opportunity to earn a 
college degree, but this opportunity should not come at the cost of 
years of crippling financial debt. That's why the time has come for 
this Congress to ease the education burden by increasing Pell Grants, 
reducing interest rates and closing the gap between college costs and 
financial aid.
  For the fifth time in 6 years, the college system in California 
raised tuition. In fact, this fall, students at Sonoma State University 
in my district will be required to pay nearly $3,000 more a year in 
tuition. That's a 10 percent increase from their current tuition.
  We need to do better. We need to work with our colleges to keep costs 
low. We need to invest in financial aid, and today, we are finally 
doing that.
  And it's going to cost $18 billion to help this financial aid 
increase; $18 billion, about the same as 6 weeks of our occupation in 
Iraq.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from New Jersey (Mr. Holt), a member of the committee.
  Mr. HOLT. Mr. Speaker, I thank the gentleman from California and 
congratulate him and thank him for developing this legislation.
  We've outlined many of the provisions of the bill today. I would just 
point out that this will result in more than $250 million in additional 
loan and Pell grant aid to New Jersians. I'm also pleased that this 
legislation includes provisions from my bill, the Part-Time Student 
Assistance Act, that will make Pell Grants available year-round instead 
of the current two semesters a year, and this is important for students 
who work and go to school.
  Also, we have raised the income protection allowance in the College 
Cost Reduction Act so that students who will have to work to support 
themselves and their families can earn more without having that count 
against their student aid.
  The bill also includes provisions from my bill, the National Security 
Language Act. This provides $5,000 in loan forgiveness for Federal 
employees with critical foreign language skills.
  The bill also provides upfront grant aid for those who are becoming 
math, science and foreign language teachers. Without qualified teachers 
in these areas, we're endangering the competitiveness of our children 
in the global economy.
  I urge my colleagues to support this legislation.
  Mr. McKEON. Mr. Speaker, I'm happy to yield 3 minutes to the 
gentleman from Indiana (Mr. Souder), a member of the committee.
  Mr. SOUDER. Mr. Speaker, this is a truly historic debate on the 
difference of philosophy of government. We agree on much of what's in 
this bill. In fact, my friend from Texas, Congressman Ron Paul, is a 
purist, capitalist, libertarian, but in fact, we've always had a 
blended government.
  And the question is, whether it's through tax incentives, direct 
spending or loans, we've had a blended economy from the days of 
building canals and from our beginning; the question is, which way are 
we going to tilt? Is it going to be a capitalist tilt, or is the tilt 
going to be government running this?
  I believe, and I understand that likely today I'm going to lose, I'm 
going to be on the losing side, but I want to go on record pointing out 
how in fact extreme this bill is.
  There is a section, a provision of this bill, however well-
intentioned, that reverses the normal role of trying to balance what 
you purchase with your ability to repay. It's an income-based section 
133 open-ended entitlement benefit, regardless of profession, that 
allows them to cap the maximum loan payment each year at 150 percent of 
discretionary income and have the remainder of the loan forgiven after 
20 years.
  Under the bill, this means a typical entry-level Hill staffer earning 
$25,000 a year would never be forced to pay more than $120 a month on 
their student loans. This would no doubt be popular to our staff, but 
the American taxpayer I don't believe would approve of this.
  An income-based repayment program would eliminate once and for all 
any need for students to weigh their choice of college or university 
against which type of career they plan to enter after the degree. It's 
a disconnect with capitalism because you don't have to say, if I get 
this number of degrees and go this far, how is my job going to repay 
this? Should I go to a local campus? Should I go to a lower priced 
college? It's disconnected now based from your choice of employment.
  While the government surely has a role in increasing access to 
education, this program would totally strip any incoming college 
student from making a responsible choice. It's kind-hearted but 
reckless.
  One final example to strengthen the point. Say someone leaves school 
with an advanced degree and $120,000 of loan debt and takes a job 
making a steady $65,000 a year. He or she, if they selected to become 
part of this program, making $65,000 a year and made only minimum 
monthly payments, using the current 6.8 percent interest rate, the 
required monthly payment under the program would not even cover the 
interest on the loan, so that, 20 years later, they would have their 
$150,000 forgiven, even though they had been making $65,000 a year. 
That's because the median income in the United States is only $46,000.
  I believe that we should work with low-income students through Pell 
Grants, and I support many parts of this bill in targeting, but when 
you disconnect the economic decisions that you make on your graduate 
degrees, on what profession and what college, it is State-controlled, 
economic controlled, not capitalism.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentlewoman from Hawaii (Ms. Hirono), a member of the committee.
  Ms. HIRONO. Mr. Speaker, I rise in strong support of the College Cost 
Reduction Act, the largest increase in college aid since the GI bill, 
and I especially thank Chairman Miller for his leadership.
  This legislation will make college more affordable and accessible for 
students in Hawaii and across America. It will do so at no new cost to 
taxpayers.
  Keeping America competitive requires an educated workforce prepared 
for high-skilled jobs. Beyond preparing our youth for careers, 
education is vital for the full development of an individual.
  College costs have skyrocketed beyond the needs of many students and 
their families, and as a result, students in Hawaii and elsewhere are 
holding off going to college or skipping it all together, and those who 
do attend college are taking on increasing amounts of debt.
  So this bill is of critical importance because the hardworking 
families I represent need this help.
  I also want to mention a few other provisions in this legislation 
that are very important to me. As a member of this committee, I worked 
to increase funding for colleges and universities for native Hawaiians 
and Alaska natives $30 million over the next 5 years. For this and many 
other reasons, I rise in strong support of this measure.
  Mr. McKEON. Mr. Speaker, how much time do I have left?
  The SPEAKER pro tempore. The gentleman from California (Mr. McKeon) 
has 1\1/4\ minutes remaining, and the gentleman from California (Mr. 
George Miller) has 9\1/4\ minutes remaining.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentlewoman from New York (Ms. Clarke), a member of the committee.
  Ms. CLARKE. Mr. Speaker, it is with great pleasure that I rise today 
to give my enthusiastic support to the College Cost Reduction Act of 
2007, H.R. 2669. I want to thank Chairman Miller for his leadership in 
this matter.
  In the advent of the 21st century, the question we must ask ourselves 
is, what have we done to ensure the success of our Nation, the 
development of our civil society? Education has been and will always be 
the portal for our advancement.
  The cost of attending college has increased by 40 percent over the 
past 5

[[Page 18521]]

years. As a result, students are graduating with more debt than ever 
and postponing enrollment or avoiding college all together because they 
just can't afford it. This legislation is a much-needed sigh of relief 
for traditional college students, working families and adult learners 
in my home district in Brooklyn, New York, and across this Nation.
  The College Cost Reduction Act cuts interest rates in half on 
subsidized student loans over the next 5 years, increases the amount of 
Federal loans available to students, and so I ask your enthusiastic 
support for this groundbreaking legislation.

                              {time}  1345

  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from Illinois (Mr. Davis), a member of the committee.
  Mr. DAVIS of Illinois. Mr. Speaker, I rise in strong support of this 
investment in America. In spite of what we have heard from the other 
side about a spending plan, what we are really looking at is an 
investment in education, for those individuals who, without it, would 
never have an opportunity to experience a college education.
  I have heard some things that I thought were unimaginable this 
afternoon. Eighty percent of the students in my district who attend the 
University of Illinois rely upon financial aid.
  This legislation provides money for Historically Black Colleges and 
Universities that are falling apart, many of them, at the seams, 
Hispanic-serving institutions. Individuals who would never, ever get an 
opportunity to go to college and experience higher education will do so 
as a result of this legislation, this investment in America. I thank 
the chairman for a great bill, and I urge its passage.
  First let me express my sincere appreciation to Chairman Miller, and 
Subcommittee Chairman Hinojosa for their efforts in introducing this 
landmark legislation to Congress. In my tenure as a Congressional 
representative for the citizens of the 7th District of Illinois, this 
is one of, if not the most critical national policy initiative for 
which I have been able to advocate. Why? Because in my district for 
example, approximately 80 percent of the students attending the 
University of Illinois rely on financial aid programs to support their 
education, and this bill provides the single largest increase in 
college aid to students across the country since the GI Bill.
  The College Cost Reduction Act increases the maximum Pell Grant 
scholarship by at least $500 over the next 5 years, and I am pleased 
that an amendment which I cosponsored added $900,000,000 to the pool; 
invests in Upward Bound, a proven effective program that empowers 
students with the resources they need to help them succeed as they 
pursue higher education; and invests substantial appropriations in 
historically Black colleges and universities, Hispanic-serving 
institutions, tribally controlled, Native and predominately black 
institutions and American and Asian American Pacific institutions.
  Detractors will try to paint this as another spending boondoggle by 
the Democrats, but this bill benefits students and families at no new 
cost to taxpayers by cutting excess subsidies the Federal government 
pays to lenders in the student loan industry.
  Some may ask why we didn't just focus on Pell Grants, but the fact 
remains that families who don't qualify for Pell Grants still need 
assistance paying for college costs, and that approximately 50 percent 
of students who do qualify for Pell Grants borrow money to pay for 
college costs. The College Cost Reduction Act of 2007 is the national 
policy initiative which demonstrates that America recognizes its 
responsibility to provide an educational environment that inspires and 
supports the pursuit of academic excellence.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentleman from Connecticut (Mr. Courtney), a member of the committee.
  Mr. COURTNEY. Mr. Speaker, I rise in strong support of this measure.
  I come from the district in Connecticut that's the home of the 
University of Connecticut, Eastern Connecticut State University, three 
community colleges, Conn. College, Mitchell College. We are the higher 
ed district of the State of Connecticut. New loan assistance and aid 
through grants in the amount of $130 million will be coming to 
Connecticut as a result of this measure being passed, which, again, is 
great news for my district.
  Frankly, this bill is about something more than just parochial 
priorities, which are very important to my district. It's also about 
the change of direction that this new Congress is keeping faith with 
with passage of this legislation.
  When I campaigned last year as a challenger in the closest race in 
America, the decision of the last Congress to take $12 billion out of 
the higher education account and use it to raise interest rates on 
student loans for the purpose of making sure that the Paris Hilton 
stratum of American society was going to get their tax cuts was a 
perfect symbol for how out of touch the prior Congress was with the 
needs of America.
  Passing this legislation will keep faith with the voters who had the 
courage to vote for change.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentlewoman from California (Ms. Linda T. Sanchez), a member of the 
committee.
  Ms. LINDA T. SANCHEZ of California. Mr. Speaker, I rise in strong 
support of the College Cost Reduction Act.
  Students from working families, especially those who are the first in 
their families to attend college, face many obstacles.
  For example, there is no one at home to say the SATs aren't that 
difficult or that tricky; or that financial aid forms aren't going to 
be a nightmare to fill out; or that taking out a student loan isn't as 
scary as it might seem.
  The high cost of college is, of course, the biggest obstacle. In 
recent years, rising college tuitions have far outstripped inflation, 
and the previous congressional majority failed to ensure that Pell 
Grants kept up.
  That's why I am proud to support this bill. It provides the single 
largest investment in higher education since the GI Bill at no new cost 
to taxpayers.
  My mother and father, both immigrants who arrived in the U.S. with 
little money, and not knowing English, raised seven children. With a 
lot of hard work and sacrifice, all of us attended college and two even 
made it into Congress.
  What I really like about this bill is that it ensures that the doors 
that were open to my brothers and sisters and me will stay open for the 
young people of today and generations to come.
  I urge support for this inportant bill.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1 minute to the 
gentlewoman from New Hampshire (Ms. Shea-Porter), a member of the 
committee.
  Ms. SHEA-PORTER. Mr. Speaker, I rise in strong support of this bill.
  Education is the key to prosperity in our Nation, and we have always 
known that. When our troops returned home during World War II, they 
became eligible for the GI Bill, which built the middle class in this 
country.
  Today we have the opportunity to once again invest in America in our 
next generation. This is the key to competitiveness. It's the key to 
the global economy, to make sure that our people will be able to work 
in the world and to prosper. It is our honor to be able to present this 
without raising any, any taxes on the American taxpayer.
  In my State of New Hampshire alone, over 15,000 students will benefit 
from this increase; 1,500 more New Hampshire students will qualify for 
Pell Grants. We have a wonderful opportunity to invest in our Nation 
and our next generation, and to strengthen the middle class.
  It is with great honor that I support this, and I thank the chairman 
for bringing this bill to us.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 1\1/2\ minutes 
to the gentleman from New Jersey (Mr. Payne).
  Mr. PAYNE. I would like to begin by thanking Chairman Miller for his 
leadership on this bill and certainly urge my colleagues to vote for 
the College Cost Reduction Act of 2007.
  Mr. Speaker, I rise in support of H.R. 2669, the College Cost 
Reduction Act of 2007. This legislation will provide the

[[Page 18522]]

single largest investment in college financial aid since the 1944 GI 
Bill, helping millions of low- and middle-income students and families 
pay for college.
  This legislation would provide about $18 billion over the next 5 
years in college financial aid at no cost to the United States 
taxpayers, no new costs.
  This new investment is critically important because college costs 
have grown nearly 40 percent in the last 5 years. Students are 
graduating from college with more debt than ever before. Many would-be 
students are holding off going to college or skipping it altogether 
because they do not believe they can afford it.
  By boosting scholarship and reducing loan and tuition costs, the 
College Cost Reduction Act of 2007 makes an historic investment in 
America's college students, its economic competitiveness and its 
future, while maintaining fiscal responsibility.
  I urge my colleagues to support this landmark legislation.
  The SPEAKER pro tempore (Mr. Ross). The gentleman from California on 
the Democratic side has 2\3/4\ minutes remaining, and the gentleman 
from California on the Republican side has 1\1/4\ minutes remaining.
  Mr. McKEON. Mr. Speaker, I think this has been a very interesting 
debate.
  At the beginning of the debate, I asked our colleagues to please 
listen carefully for anything they might hear that would lower tuition 
rates, that would lower the cost of a college education. I have 
listened very carefully, and I haven't heard anything.
  I have heard a lot of talk about investment, I have heard a lot of 
talk about new spending, and a lot of these things sound wonderful. It 
reminds me kind of when I would take my children to sit on Santa 
Claus's knee. He would ask them what they want. They would tell him all 
the wonderful things, and many times I wished I could have been Santa 
Claus and just give them all that they wanted. Sometimes it comes back 
to reality and the parents have to make some tough decisions based on 
our budget.
  I think people that are listening to this debate realize that there 
is no free lunch. With all of the new programs, nine new entitlement 
programs, somebody is going to have to pay for those.
  I just entreat those who are watching to not create nine new 
entitlements, to place the interests of colleges, universities, 
graduates, philanthropic organizations above the needs of low-income 
students. Let's not put this price on our children and our 
grandchildren.
  Mr. Speaker, I yield back the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I want to thank all of 
the members of the committee for their work on this legislation on both 
sides of the aisle. I certainly want to thank the staff as we finish 
general debate.
  Mr. Speaker, we said when we gained the majority in this Congress 
that we wanted to take America in a new direction. This legislation, in 
fact, does that.
  For 6.8 million students who take out need-based loans, this 
legislation will allow for cutting the interest rate in half over the 
next 5 years for those students. That will save them almost $4,400 on 
the average debt that they graduate with. For almost 5.5 million 
students who rely on a Pell Grant for the basic cost of their 
education, this means that over the next 4 years that grant will 
increase by some $500, definitely a new direction.
  Because what we saw in the past was the Republicans made it more 
expensive to pay for your student loans. They provided little or no 
contribution to the Pell Grant over the last 4 or 5 years. That is a 
new direction.
  What does it mean to America? It means that we are investing in the 
students and the talent of the future. It means that these are the 
young people that will take their talents and provide the next 
generation of discovery, the next generation of innovation, the next 
generation of jobs in America, the next generation of economic activity 
here at home. That's the investment that was made by our grandparents 
back in 1944, in that generation, the first generation to go to college 
in such great numbers with the GI Bill, and that's the investment that 
we have the courage and the vision to make in this generation of young 
people for the future of this country.
  That's what this legislation is about. It's about making sure that 
the doors of a higher education that every employer tells us is now 
necessary to come to the American workplace if you want a career and 
you want a decent wage and you want to be able to provide for your 
family. The doors to those higher education institutions, be they 
community colleges, State colleges, universities or elite universities, 
however you want to characterize them, that those doors will not be 
closed to people who are talented and ready and qualified to go to 
college.
  This legislation provides the means to ensure their access to help 
them pay for it and to help them make sure that they don't have to make 
choices against their best interest because of that debt and later in 
life that they can choose to go into the professions that serve us as a 
society. This is a dramatic departure, a dramatic departure from the 
status quo, a dramatic departure.
  What the Republicans did, when they had a chance, they had $20 
billion. They decided they would help pay for the tax cuts to the 
wealthiest people in the country. That's what they did with a big chunk 
of the money that they took from these excess subsidies, the subsidies 
that we are taking a way from the banks.
  The entitlement program that the banks have today as we stand here 
will be changed. Yes, it will become an entitlement program for 
America's families, America's students, those most at need in this 
country. That's what this Congress ought to be doing. That's what this 
society wants us to do, and we're going to do it today when we pass 
this legislation.
  Mr. BACA. Mr. Speaker, I rise today in support of H.R. 2669, the 
College Cost Reduction Act of 2007.
  This historic piece of legislation is the relief our working families 
have been waiting for and I am proud to stand with this Democratic-led 
Congress to make college educations more accessible for our youth.
  Housing, gas, food, utilities, and health insurance prices are going 
through the roof. Our middle-class parents are working overtime to keep 
up with the cost of living and hopefully save for retirement.
  It has become increasingly difficult for our families to save for 
college. With tuition prices increasing an average of 3.5 percent each 
year, American families are facing an uphill battle.
  As a result, more and more of our children are coming out of school 
with staggering amounts of debt and many are being forced to attend 
part-time in order to work and pay for books and student fees.
  In my home state of California, the average 4-year public school 
student will walk away with over $15,000 in debt after graduation. This 
is not how we should be sending our youth into the workforce.
  H.R. 2669 is going to slash the interest rates on student loans, 
saving the average American student about $4,400 in interest payments 
over the life of their loan.
  Furthermore, we're going to help our families take on less student 
debt by making Pell Grants keep up with the real cost of tuition.
  During the Republican-controlled Congress, the maximum Pell Grant 
amount remained unchanged at $4,050 since 2003. H.R. 2669 is going to 
increase that figure to $4,310 in 2007 alone. By next year, it will be 
$4,900 and by 2011, it will be $5,200.
  In my home state of California, over 600,000 Pell Grant recipients 
stand to benefit from the legislation we're going to pass today.
  That means our children will be in a better position to save for 
retirement, become homeowners, and contribute to the economy.
  H.R. 2669 will also make landmark investments to our minority serving 
institutions. Black, Hispanic, Tribal, Native Hawaiian, and Asian-
Pacific Islander-serving institutions stand to receive $500 million in 
aid to teach and equip our minority youth, particularly in the science, 
technology, engineering, and math fields.
  H.R. 2669 provides an additional $228 million for Upward Bound, which 
will fund 188 additional programs to help prepare low-income, first 
generation students for college.
  Finally, H.R. 2669 will provide loan forgiveness for students who 
pursue careers as public school teachers. Each would receive up-front 
tuition assistance of $4,000 per year, to a maximum of $16,000. This 
will provide aid to at least 21,500 undergraduate and graduate

[[Page 18523]]

students who commit to teaching a high-need subject in high-need 
schools for four years.
  As the youngest of 15 children, I was the first in my family to 
attend college. I can tell you from personal experience that it has 
made all the difference in the world.
  I worked hard to get through school and I'm grateful for the 
assistance I received to complete my education. And it's time for the 
government to step up and give our children the same support.
  The College Cost Reduction Act is the kind of reform my constituents 
need and I am proud to support this legislation. I urge my colleagues 
to do the same and support H.R. 2669.
  Mr. HINOJOSA. Mr. Speaker, I rise in strong support of H.R. 2669, The 
College Cost Reduction Act. I urge all of my colleagues to vote ``yes'' 
on the largest investment in student aid since the passage of the GI 
bill.
  The College Cost Reduction Act re-affirms the fundamental federal 
interest in higher education--ensuring that students and families have 
access to the financial and other supports they need to achieve a 
college education.
  The fundamental guaranty in our student aid programs is not to 
protect lucrative lines of business in the lending industry; it is a 
guaranty of college access for students. When we lose sight of this 
core principle, we lose our way as we have seen with the recent 
scandals in the student loan industry.
  H.R. 2669 is about guaranteeing access. This legislation increases 
student financial aid on an order of magnitude we have not seen in more 
than a generation. It invests in our public servants and in our 
teachers. It brings the private sector and charitable organizations to 
the table to leverage resources so that more first generation, low-
income college students can realize their full potential.
  I am particularly proud of our work to strengthen the institutions 
that are the gateways of access to higher education for minority 
students. Through this amendment we will commit to investing one-half 
billion dollars over 5 years in hispanic-serving institutions, 
historically black colleges and universities, predominantly black 
institutions, tribally-controlled Colleges and Universities, Native 
Alaskan and Native Hawaiian serving Institutions, and institutions that 
serve Asian and Pacific Islanders. This represents a doubling of the 
current investment in the strengthening and developing institutions 
programs in Titles III and V of the Higher Education Act.
  Many on the other side will say that we are investing in institutions 
and not students. They will rail against new entitlement spending. 
These arguments reflect a fundamental lack of understanding of the 
communities that will fuel the growth in our workforce. Worse, they 
indicate an unwillingness to invest in those communities.
  HSls, HBCUs, and other minority-serving institutions are only going 
to grow in their importance for ensuring that our Nation continues to 
have enough college graduates to fill the jobs in our knowledge-based 
economy. The 2007 Condition of Education reports that 42 percent of our 
public school children are racial or ethnic minorities--one in five is 
Hispanic.
  These students face many challenges.
  Seventy percent of black 4th graders, 73 percent of Hispanic 4th 
graders, and 65 percent of Native American 4th graders are eligible for 
free and reduced priced lunches. These students are also concentrated 
in our highest poverty public schools where over 75 percent of the 
students are from low-income families.
  These schools are the focus of the No Child Left Behind Act. They are 
the feeder schools to our Title III and Title V institutions. It is in 
our national interest to strengthen the capacity of these institutions 
to serve their communities. It is a worthy investment.
  I urge all of my colleagues to support H.R. 2669.
  Mrs. MALONEY of New York. Mr. Speaker, I rise in strong support of 
the College Cost Reduction Act.
  I want to commend Chairman Miller on this legislation, which provides 
the single largest investment in higher education since the GI bill--at 
no new cost to taxpayers.
  I am proud that this Democratic Congress has tackled the college cost 
crisis: the time to act is now. Over the last 5 years, college costs 
have grown by nearly 40 percent. Students across the country are 
graduating with more and more debt. In my home state of New York, the 
typical student with need-based loans graduates from 4-year public 
schools with over $14,000 in debt. And each year nearly 200,000 
students in our country hold off on attending college, or opt out 
altogether, simply because they cannot afford to go.
  This historic bill would make college more affordable by cutting 
interest rates on subsidized student loans in half over the next 5 
years. In New York, this means an average student saves $4,570 over the 
life of their loan.
  It will also increase the purchasing power of the Pell Grant 
Scholarship, upping the maximum scholarship by at least $500 over the 
next 4 years and ultimately reaching a maximum scholarship of at least 
$5,200 by 2011. In New York, this increased purchasing power could 
directly help over 420,000 students.
  Under the College Cost Reduction Act, students from New York and all 
across the country will be better able to achieve their goals and reach 
their dreams. Our Nation and our economy also benefit when we 
strengthen the middle class by making college more affordable. I am 
proud to cast my vote for this historic bill, which makes a tremendous 
step towards ensuring that no one is denied the opportunity to go to 
college simply because of the price.
  Mr. SPRATT. Mr. Speaker, I rise in support of H.R. 2669 (the College 
Cost Reduction Act of 2007), a bill that is good for students and good 
for the Federal budget. Our budget resolution for fiscal year 2008 
included reconciliation instructions for the House Committee on 
Education and Labor to cut its spending by $750 million by 2012, and 
this bill more than fulfills that target. In fact, this reconciliation 
bill will reduce the Federal Government's budget deficit by $2.8 
billion over the next 5 years while investing billions of dollars in 
making college more affordable for millions of students.
  One of the first actions of the 110th Congress was to institute a 
tough pay-as-you-go rule in the House that requires all changes to 
mandatory spending and revenues to be offset so that they do not lower 
the budget's bottom line. The rule was necessary to help restore fiscal 
balance, and it requires Congress to make tough choices about 
priorities. This bill adheres to the pay-as-you-go rule--with net 
savings of $2.8 billion over the 2007-2012 period and even greater 
savings over 2007-2017--while also providing needed improvements in 
student loans and grant aid.
  Like previous reconciliation bills, the College Cost Reduction Act 
includes some new resources that are more than offset by cuts 
elsewhere. All of the new resources in the bill will make college more 
affordable, either by lowering the cost of loans--up-front or through 
forgiveness after graduation--or by increasing the amount of grant aid 
available. But none of these resources will increase the deficit: the 
bill not only complies with our pay-as-you-go rule and the 
reconciliation directive but actually reduces the deficit by $2.8 
billion over the next 5 years.
  To pay for these student benefits, the bill reduces the extra 
subsidies that the government pays to banks. These reductions are 
similar to those in H.R. 5, which passed the House in January by a 
bipartisan vote of 356-71, and to the subsidy cuts in the President's 
2008 budget proposal. But the student loan business will continue to be 
an attractive one for banks, which are still guaranteed to receive 95 
percent of unpaid principal on any defaulted loan and still receive a 
subsidy from the Federal Government on each loan they provide.
  Mr. BLUMENAUER. Mr. Speaker, I support H.R. 2269, the College Cost 
Reduction Act of 2007, the single largest investment in college 
financial aid since the 1944 GI bill. This legislation will help 
millions of middle- and low-income families and students pay for 
college without any new cost to taxpayers. At a time of skyrocketing 
tuition costs, government investment has not kept up. As college 
degrees become more expensive, we must help keep bright students in 
school and ensure a bright future for America.
  The legislation boosts college financial aid by about $18 billion 
over the next 5 years, and pays for itself by reducing excessive 
federal subsidies paid to lenders in the college loan industry by $19 
billion. Over the course of 5 years, almost 70,000 Oregon students 
would benefit from an additional $194 million in available loans and 
Pell Grants. The average Oregon student graduates with more than 
$14,000 in debt, and this legislation would cut by almost $5,000 the 
interest paid on their loans. By investing in our students, we ensure a 
well-educated, globally competitive workforce. We also benefit our 
communities by providing incentives for our brightest to go into public 
service jobs and into our neediest schools.
  I am proud to be part of this new Congress that prioritizes 
education, making it feasible for all families to send their kids to 
college, and keeping America competitive.
  Mr. MICHAUD. Mr. Speaker, I am pleased to support the College Cost 
Reduction Act of 2007. This legislation will provide the single largest 
investment in higher education since the GI bill, helping low- and 
middle-income students and families pay for college.
  Unfortunately, too many Maine students do not obtain a postsecondary 
education because

[[Page 18524]]

they cannot afford the dramatically escalating costs of higher 
education. This legislation is a historic opportunity to put education 
goals within reach for many students by increasing funding for Pell 
Grants, cutting interest rates on subsidized student loans, and 
increasing funding for Upward Bound.
  While there are provisions within the underlying bill to protect 
small lenders, I will continue to work hard to ensure that the small 
lenders in Maine, including the Finance Authority of Maine (FAME), are 
protected in the final legislation. FAME has provided many Maine 
students the opportunity to go on to postsecondary education and it's 
important to ensure that they, and other small lenders, are able to 
continue to provide the best service possible for Maine students.
  Ms. SOLIS. Mr. Speaker, I rise today in strong support of H.R. 2669, 
the College Cost Reduction Act of 2007. Not since 1944, with the GI 
Bill, has Congress taken such a proactive step in ensuring that 
millions of Americans can attend higher education institutes.
  It is time to start providing our students with the aid needed to 
keep America competitive by strengthening the middle class and 
increasing diversity on our campuses. H.R. 2669 will allow middle class 
and minority families to have access to quality education by increasing 
grant aid and lessening the burden of loans. Along with H.R. 5, this 
legislation ensures that our students will finally have the funding for 
higher education that has long been denied them.
  This bill will increase the Pell Grant by $500, benefiting 646,000 
students in my home state of California. In addition, 6.8 million 
students nationwide who take out need-based federal student loans would 
see the interest rates cut in half, providing California alone with 
over $1.4 billion more in loan and Pell aid. H.R. 2669 not only puts 
and keeps students in college--it strengthens our communities by 
providing financial assistance to people entering public service 
careers, like nurses, police, firefighters, first responders, and 
teachers.
  For students in Los Angeles, this is real dollars in the pockets of 
those who need it most. Since 1980 the Latino population in the United 
States has doubled, but Latinos attending college has only increased 5 
percent during this same period. Latinos continue to face numerous 
obstacles on the road to college. Low family incomes, low financial aid 
awards and a reluctance to assume debt has hindered Latinos for too 
long in achieving their higher education goals. The College Cost 
Reduction Act helps support those institutions helping Latino students 
by guaranteeing $500 million over 5 years for Hispanic-Serving 
Institutions, Historically Black Colleges and Universities, and Tribal 
Colleges.
  Financial assistance was critical to my ability to obtain a higher 
education and I am proud that H.R. 2669, the College Cost Reduction Act 
of 2007, will help Latinos and other low income students get the 
financial security to pursue their dreams. I strongly support this 
legislation that invests in our students, our communities and our 
Nation.
  Mr. AL GREEN of Texas. Mr. Speaker, the road to a better society is 
paved with better education. H.R. 2669, the College Cost Reduction Act 
of 2007, is the single largest investment in higher education since the 
GI bill and highlights the commitment of this Congress to making 
college more affordable. By making this investment in our students, we 
are investing in the future of our country.
  This landmark legislation will provide vital assistance to low- and 
middle-income students by increasing the Pell Grant Scholarship by $500 
over the next 5 years. In the state of Texas alone, over 470,000 could 
benefit from this increase.
  H.R. 2669 will also encourage philanthropic participation in college 
financing through matching grants aimed at increasing the number of 
first generation and low-income college students.
  By passing this bill we will be making great strides on behalf of 
minority students. The College Cost Reduction Act invests $500 million 
in minority serving institutions and creates two new designations--
Predominately Black Institutions and Institutions Serving Asian 
Americans and Pacific Islanders. By recognizing these institutions, we 
recognize their commitment and dedication to serving our minority 
students.
  Mr. Speaker, I believe in an America where every child should grow up 
knowing that if they study and work hard, that they will have the 
opportunity to achieve the American Dream.
  I believe in an America where the circumstances into which you are 
born do not determine whether you will one day stand in front of family 
and friends as you receive a college diploma.
  I commend Chairman Miller and our Democratic Leadership for their 
continued commitment to ensuring that a college education is not out of 
reach for low- and middle-income Americans.
  Mr. LEVIN. Mr. Speaker, I rise in strong support of H.R. 2669, the 
College Cost Reduction Act of 2007.
  In 2004, a report by Michigan's Lt. Governor John Cherry's Commission 
on Higher Education and Economic Growth laid out how two-thirds of the 
jobs created in the next decade will require post-secondary education 
and training. There is little debate that Michigan's economic future is 
directly linked to our ability to accelerate the completion of degrees 
in higher education.
  Despite increasing costs across the country and in our state, our 
federal investment in higher education has faltered. Direct grant aid, 
which once made up roughly 60 percent of the federal government's 
student aid contribution has dropped to 40 percent, with the remaining 
60 percent offered through loans. The real dollar value of Pell Grants 
has sunk in recent years, while the average college graduate is now 
faced with close to $17,500 in debt. For lower and middle income 
students and families these costs are simply too great, forcing nearly 
200,000 to delay or postpone their college dreams because of the 
prohibitive costs.
  It has become increasingly clear that the failure of the federal 
government to adequately invest in higher education will have effects 
beyond college accessibility. In 2005, the National Academies of 
Sciences released a report entitled ``Rising Above the Gathering 
Storm'' which expressed deep concern that our country is losing its 
competitive advantage in science and technology research, two fields 
that are critical to our economic leadership.
  The seriousness of our higher education crisis necessitates a 
comprehensive response of dramatic proportions. The College Cost 
Reduction Act of 2007 rises to this challenge by investing $18 billion 
over the next 5 years in higher education, the single largest 
investment in college financial aid since the GI Bill in 1944.
  The maximum Pell Grant is boosted $500 to $5,200--up from just $4,050 
in 2006--with its eligibility expanded to more students. TEACH grants 
are established to provide $4,000 per year for high-achieving students 
who commit to teach in high-need schools or high-need fields--like math 
and science. The interest rates for need-based student loans would be 
halved.
  In Michigan, over 200,000 students could see benefits from the Pell 
increases and about 144,000 student borrowers with subsidized loans 
would see savings of over $4,200 on average over the life of their 
loans. This bill provides close to $513 million in loans and grants to 
Michigan's students and families.
  The investments in this bill maintain the commitment made by this 
Democratic Congress to fiscal responsibility. The bill is fully offset 
by trimming excessive federal subsidies to lenders in the college loan 
industry. Not only will this not cost taxpayers a dime, it includes 
$750 million over 5 years to pay down our national deficit.
  The College Cost Reduction Act meets the mounting hurdle of higher 
education affordability with vigorous across-the-board grant aid and 
loan investments. It shows the commitment by this Congress to the 
availability of a college education and the importance of this 
education to our economic competitiveness. Improving access to higher 
education is vital to expanding opportunity for Michigan students and 
building Michigan's economic future. This has to be an ongoing priority 
for the federal government and this legislation is an important step in 
the right direction. With this legislation, Congress has stepped up to 
the plate to ensure a better future for our students, their families 
and our country.
  Mr. DINGELL. Mr. Speaker, I have always believed students must have 
the opportunity to earn degrees based on their academic accomplishments 
rather than on their economic situation. Today's economy demands a 
highly educated work force, which is why Congress must ensure we are 
providing educational access to every qualified student that wants to 
attend college. H.R. 2669, the College Cost Reduction Act, will do just 
that by making the single largest investment in college financial aid 
since the 1944 GI Bill.
  I have heard from many of my constituents that the daunting costs of 
a college education are preventing them from achieving a college 
degree. They are not alone. Nearly 200,000 students are holding off on 
going to college or forgoing college completely because they can't 
afford it. In the last 5 years tuition at 4-year public colleges has 
grown by 35 percent, forcing both students and their families to take 
on increasing amounts of debt to pay for college. At a time when 
Michigan's economy and workforce is struggling, a college education 
should

[[Page 18525]]

not be a luxury that is unreachable for middle-class families.
  When the Democrats took the majority this year, we committed to 
making college more affordable and accessible. H.R. 2669 will do this 
by cutting the interest rate from 6.8 percent to 3.4 percent over the 
next 5 years. Each year 6.8 million students take out need-based loans 
and accrue thousands of dollars of debt while completing their college 
degree. This legislation will cut in half the interest rates on their 
loans, saving the average student--with $13,800 in need-based student 
loan debt--$4,400 over the life of the loan.
  H.R. 2669 will also increase the maximum value of the Pell Grant 
scholarship by $500 over the next 5 years, ultimately reaching a 
maximum scholarship level of $5,200. As the Federal Government's single 
largest source of grant aid for college students, this proposed 
increase will directly benefit over 5 million low- and moderate-income 
students.
  More importantly, this legislation will prevent student borrowers 
from facing unmanageable levels of Federal student debt by guaranteeing 
borrowers will never have to spend more than 15 percent of their yearly 
discretionary income on loan repayments and by allowing borrowers who 
enter public service to have their loans forgiven after 10 years. This 
is critically important because students today are graduating from 
college with more debt than ever before.
  Many people may be asking how this will help those who are struggling 
in Michigan. In our great State of Michigan, over 143,000 students take 
out need-based loans each year. The average student has $13,256 in 
need-based student loan debt. H.R. 2669 will provide interest rate cuts 
that win save each Michigan student $4,240 over the life of their 
student loan. This legislation will also provide $513 million in 
increased loan and Pell Grant aid to students and families in Michigan 
over the next five years--benefiting over 200,000 students.
  Mr. Speaker, I rise in support of this legislation not only because 
it will increase college affordability, but because it will help our 
workforce. Our economy depends on aggressive investment in our 
workforce if we want to continue to be competitive in a global economy. 
I urge my colleagues to vote in favor of this legislation, showing 
American families that Congress is committed to investing in higher 
education.
  Ms. HIRONO. Mr. Speaker, I ask permission to revise and extend my 
remarks.
  I rise in support of the College Cost Reduction Act, the largest 
increase in college aid since the G.I. bill, and I thank especially 
Chairman Miller for his leadership.
  This legislation will make college more affordable and more 
accessible for students in Hawai`i and across America.
  It will do so at no new cost to taxpayers.
  Keeping America competitive requires an educated workforce prepared 
for high skilled jobs.
  Beyond preparing our youth for careers, education is vital for the 
full development of an individual.
  College costs have skyrocketed beyond the means of many students and 
their families. As a result, many students in Hawai`i and elsewhere are 
holding off on going to college or skipping it altogether. And those 
who do attend college are taking on increasing amounts of debt, so this 
bill is of critical importance to the hard-working families I 
represent.
  I also want to mention a few other provisions in this legislation 
that are especially important to me: As a member of the Education and 
Labor Committee, I worked to increase funding for colleges and 
universities serving Native Hawaiians and Alaska Natives by $30 million 
over the next 5 years.
  We also included a $10 million investment in institutions serving 
Asian and Pacific Islander populations that historically have had low 
education attainment.
  This legislation includes the provisions from my Early Educator Loan 
Forgiveness bill that provides college loan forgiveness for graduates 
who enter the field of early education to encourage more of them to 
pursue this field.
  For these reasons and more, I am proud to support this legislation.
  Mrs. CHRISTENSEN. Mr. Speaker, I rise today in support of H.R. 2669, 
the College Cost Reduction Act. I commend the Honorable George Miller 
for introducing this much needed piece of legislation and for his 
leadership on this issue and education in general.
  As you all know, college costs in America are simply out of range for 
far too many Americans. The University of the Virgin Islands, a 
Historically Black University in my district, costs $10,000 per year 
while the median income of a Virgin Islands resident is $32,613. One 
does not have to be a rocket scientist to see the problem. It is 
further amplified when examining my alma mater, the George Washington 
University. Tuition at George Washington for an undergraduate starting 
this fall will be $39,210 per year--a hefty sum when considering that 
the median income of need-based federal loan borrowers in 2003-2004 was 
$45,000.
  This welcome legislation will raise the maximum value of the Pell 
Grant Scholarship by $500, thus increasing its purchasing power and 
benefiting roughly 5.5 million low- and moderate-income students. And 
this is only the beginning.
  The College Cost Reduction Act will also cut in half interest rates 
on need-based student loans which so often become an unnecessary burden 
over the heads of those just starting out in their respective 
professions. In lowering the interest rates from 6.8 percent to 3.4 
percent over the next five years, we are saving the average student 
borrower $4,400 on their overall loan. The sad reality is that many 
students from middle class homes miss out on obtaining a secondary 
education because of a failure on our part. Many middle class students 
have guardians that make too much money to qualify for Federal grants 
but not enough to actually provide needed financial support.
  Every one of our children and indeed every American strive to reach 
the American dream. As their representatives, we must support them in 
this pursuit by granting middle class Americans every opportunity 
possible to obtain affordable higher education. This legislation will 
expand eligibility of grants by almost 600,000 students, thus, helping 
to end the unfair burden many students from middle class homes now 
face.
  Colleagues, I urge you to support this needed legislation. The 
College Cost Reduction Act of 2007 will be the single largest increase 
in secondary education support by the United States Government since 
the GI Bill--and it will not cost the American tax payer one cent. Our 
young people are America's future. It is critical that we invest in 
that future.
  Mr. STARK. Mr. Speaker, I rise today in strong support of the College 
Cost Reduction Act of 2007. This bill provides the largest single 
investment in higher education since the Montgomery GI Bill of 1944, 
with no new cost to taxpayers.
  Today, Federal financial aid programs fail to meet the needs of many 
students. That means a college education is unattainable for many young 
people. Public university students can only expect one-third of the 
cost of attendance at a 4-year institution to be covered by the Pell 
grant, down from two-thirds of the cost covered in 1980. This bill 
makes higher education more affordable by increasing the maximum Pell 
grant by $500 and increasing the number of eligible students by over 
half a million. These improvements are long overdue.
  In addition to strengthening Pell grants, this bill builds on other 
existing Federal student aid programs to help provide our next 
generation with a chance to succeed. It lowers Federal loan interest 
rates to improve accessibility and ease the growing debt burden of 
graduates. In 2004, one-fourth of all graduating students with loans 
carried more than $25,000 in loan debt. Perversely, last year the 
Republican-controlled Congress enacted the largest reduction ever to 
Federal student aid programs to finance tax cuts for the rich. The 
College Cost Reduction Act--H.R. 2669--begins to reverse failed 
Republican policies by reducing the Federal interest rate on student 
loans from 6.8 percent to 3.4 percent over 5 years.
  We must strengthen our education system if we hope to compete in a 
global economy. In addition to making college more financially 
feasible, careers in public service need to be rewarded. Quality 
elementary and secondary teachers are essential to our public school 
system, but in 2003-2004 their median salary was only $31,704. Teachers 
deserve more than pats on the back. This bill provides upfront tuition 
assistance for aspiring educators who commit to teaching high-need 
subjects in underperforming schools.
  This bill pays for itself by reducing some of the massive fees paid 
to the scandal-plagued student loan industry. Instead of subsidizing 
the profits of lenders, this bill puts money in the hands of low- and 
middle-income students. Not surprisingly, President Bush is siding with 
the big lenders and he's threatened to veto this essential legislation. 
He and the Republicans in Congress continue to obstruct real progress 
in education and almost every other domestic priority.
  We must address the rising cost of higher education, reinvest in our 
schools by attracting new teachers, and cultivate the next generation 
of American leaders. I urge all of my colleagues to join me in voting 
for America's future and supporting this bill.
  Mr. ETHERIDGE. Mr. Speaker, I rise in support of this legislation and 
urge my colleagues to join me in voting for it.

[[Page 18526]]

  As the first member of my family to graduate from college, I know 
firsthand that affordable access to quality higher education is the key 
to the American dream for working families. Unfortunately, college 
costs have skyrocketed in recent years even as many fine colleges and 
universities, like those in North Carolina, have gone to great lengths 
to keep higher education affordable. The Federal Government has an 
obligation to step up to the plate and provide more assistance, and 
H.R. 2669 makes several important changes to the Federal student 
financial assistance effort.
  Specifically, H.R. 2669 would provide nearly $18 billion in college 
financial aid at no new cost to the taxpayers. The bill would increase 
the maximum Pell grant scholarship for low-income and moderate-income 
students by $500 over the next 5 years. It would cut in half the 
interest rate on need-based Federal student loans from 6.8 percent to 
3.4 percent over 5 years. This will save the typical borrower some 
$4,400 over the life of the loan. This provision alone could benefit 
more than 162,000 students in North Carolina.
  H.R. 2669 would make historic investments in Historically Black 
Colleges and Universities--HBCUs--with $170 million in new grants for 
HBCUs, such as Shaw University and Fayetteville State University, in my 
congressional district. H.R. 2669 also would create a new designation 
of Predominantly Black Institutions, which are defined as schools that 
enroll students in financial need and have at least 40 percent African-
American student enrollment. These schools would be eligible to receive 
$30 million in grant aid over 5 years for academic programs in the 
fields of science, technology, engineering, health education, and 
teacher education. This legislation would provide $228 million in 
funding over 4 years for Upward Bound that increases high school 
completion, college participation, and graduation rates among low-
income and first-generation college students.
  I enthusiastically support the bill's tuition assistance for 
excellent undergraduate students who agree to teach in the Nation's 
public schools and its loan forgiveness for college graduates that go 
into public service professions. In addition, H.R. 2669 would make 
important new investments in science, technology, engineering and 
mathematics--STEM--education that is so critical to our prosperity in 
the global economy.
  I want to thank Chairman Miller and his outstanding professional 
staff, especially Gaby Gomez, Denise Forte, and Mark Zuckerman, for 
working with me to help nonprofit lenders, like we have in North 
Carolina. Specifically, this bill provides non-profit and small lenders 
a significant boost to their bottom line earnings and their ability to 
compete with for-profit lenders. These lenders will save $85 million in 
the first year to re-invest in their college aid financing and nearly 
$500 million over 5 years to serve students even better.
  As the legislative process moves forward, I want to continue to work 
with Chairman Miller to ensure that cuts to lender subsidies do not 
result in North Carolina students paying more for their loans than they 
do today. I am confident the final product will achieve that result, 
and I urge my colleagues to join me in voting to pass H.R. 2669.
  Ms. SCHAKOWSKY. Mr. Speaker, this is such an exciting day. Today, we 
say to the nearly 200,000 students every year who do not attend college 
for financial reasons, you deserve better. You deserve better than 
outdated financial aid packages, crippling debt, and empty promises of 
support once you graduate. Today we are delivering on that promise.
  Higher education has become increasingly important in this country 
and around the world, yet it has been rapidly slipping from the grasp 
of thousands and thousands of students every year. Over the past 
several years, states have cut higher education funding and in many 
cases, passed that cost on to students.
  Student loans, which for two-thirds of our students average $20,000, 
not only affect student's financial viability down the road, they 
effect the range of opportunities that are available to new graduates 
as they seek out professions that will enable them to repay their 
loans. Education is supposed to be the gateway to opportunity, not the 
path to financial ruin.
  One of the most important provisions of H.R. 2669 is an expansion of 
eligibility and an increase in the Pell grant scholarship to $5,200 
over the next 5 years. This bill will also encourage and enable 
graduates to go into the public service fields they're interested in--
and which our country so desperately needs--by providing loan 
forgiveness for first responders, early childhood educators, 
librarians, nurses, public defenders, and public prosecutors. These 
professions are some of the most important to our communities, yet they 
are chronically undersupported.
  This bill will also provide tuition assistance to students who commit 
to teaching in public schools, high-poverty communities, and high-need 
subject areas. It also makes a landmark investment in Hispanic-Serving 
Institutions and Tribally Controlled, Native or Predominately Black 
Institutions.
  By redirecting excessive Federal subsidies for lenders in the student 
loan industry, these new commitments will come at no additional cost to 
taxpayers. It's time that taxpayer dollars go towards our student's 
future--and the future of our competitiveness as a nation.
  I urge my colleagues to support this remarkable legislation.
  Mr. WELDON of Florida. Mr. Speaker, I join with my colleagues in 
support of efforts to make college education more affordable for more 
Americans. Indeed earlier this year I voted in support of H.R. 5, the 
College Student Relief Act of 2007. I believed that bill took some 
positive steps and was pleased to support it.
  I am very disappointed that the bill before us, H.R. 2669, falls far 
short of its goal. While those who drafted the bill assert that it is a 
comprehensive solution to making college more affordable, H.R. 2669 
fails to address the core problem of access to U.S. colleges and 
universities: sky-rocketing rates of tuition and room and board. In 
just the last 7 years, yearly inflation has increased on average 2.7 
percent. However, higher education costs for students has increased an 
average of 4.2 percent--a rate that is 55 percent higher than regular 
inflation. This bill makes it easier for students to borrow more money 
to face these costs, but it does nothing to fix the root problem. And, 
the end result will be that under H.R. 2669, the average college 
student graduating from college 4 years from now will still face a 
higher college debt than those graduating this year--even with all of 
the billions of dollars included in this bill. Why is that the case? 
Because this bill does nothing to address the core problem facing 
college students: uncontrolled growth in tuition, room and board.
  Under H.R. 2669, those attending college in the future will be able 
to borrow more money and perhaps pay a lower interest rate, but with 
college expenses growing at a rate that far exceeds the annual 
inflation rate, students will end college with a significantly larger 
debt. By failing to address this fundamental problem, this bill avoids 
the major issue facing families and college students. It is due to this 
obvious omission that I could not vote for final passage of this bill.
  H.R. 2669 will enable students to take on more debt which will 
further burden them for many years past graduation. In 2006, the Higher 
Education Price Index, HEPI, calculation showed that inflation for 
colleges and universities jumped to 5 percent. This is 30 percent 
higher than the regular inflation rate. When colleges and universities 
know that students have access to more funds through financial aid, 
loans, and grants they have simply seen this as an opportunity to raise 
costs for students. This was the case in the past and it is likely to 
happen again.
  This bill does nothing to discourage colleges and universities from 
further inflating their tuition rates. In fact, it will do the 
opposite. If we truly want to help our students go into the world with 
a good education and saddled with less debt, we should hold colleges 
and universities who take government aid more accountable and not allow 
them to continue their excessive increases in college costs. Our 
students deserve better.
  Mr. CONYERS. Mr. Speaker, I rise today in support of H.R. 2669, the 
College Cost Reduction Act of 2007, which will cut excess subsidies 
paid by the federal government to lenders in the student loan industry 
and reinvest those funds to allow for the single largest investment in 
higher education since the GI bill, at no new cost to taxpayers.
  Over the last few decades, the cost of a postsecondary education in 
our country has more than doubled for graduates with student loans, 
from $9,250 to $19,200--a 108 percent increase (58 percent after 
accounting for inflation). As the richest nation in the world, we have 
a moral obligation to eliminate the barriers this de facto economic 
segregation erects. No child should be forced to forgo the dream of a 
college education due to fear of debt, and no child should have that 
potential debt dictate their future career choice.
  The College Cost Reduction Act will provide us with a real chance, a 
$15.1 billion chance, to roll back the spiraling cost of higher 
education in this country. By cutting interest rates in half on 
subsidized student loans and increasing the maximum Pell Grant 
scholarship, this act makes College more affordable and moves more 
Americans into the middle class.
  Passing H.R. 2669 will also provide upfront tuition assistance to 
students committed to

[[Page 18527]]

teaching at public schools in high-poverty communities or high-need 
subject areas. Furthermore, this legislation provides loan forgiveness 
to encourage students who choose to pursue careers as public servants. 
By enacting these provisions, we will be allowing students to become a 
nurse, public defender, prosecutor or firefighter free from the 
restraints of debt.
  Finally, the College Cost Reduction Act Congress will be making a 
landmark, $500 million investment in Historically Black Colleges and 
Universities, Hispanic-Serving Institutions, and Tribally-Controlled, 
Native or Predominately Black Institutions, ensuring that students can 
not only enter college, but count on continued support through 
graduation.
  In the first 50 legislative hours of the 110th Congress, the 
Democratic majority in the House of Representatives took up and passed 
H.R. 5, the College Student Relief Act, which cut the interest rates in 
half on certain subsidized student loans over the next five years. In 
passing that legislation, we kept our promise of making college more 
affordable and accessible. Today, with H.R. 2669, the College Cost 
Reduction Act, we build on this effort and once again prove that the 
110th Congress is on the job and fighting for a better America.
  Ms. BORDALLO. Mr. Speaker, I rise in support of H.R. 2669, the 
College Cost Reduction Act. Too many of our country's promising young 
men and women do not go to college because of the prohibitive cost of 
tuition. Many of those students who decide to attend institutions of 
higher education require loans to finance their education. A college 
education has always been expensive. But it is quickly becoming 
unaffordable for students and their families. Tuition rates at four-
year colleges have increased by approximately 35 percent over inflation 
during the last five years. The rising cost of tuition causes 
approximately 200,000 students annually to delay beginning college or 
forgoing the chance to study for a higher degree altogether. This 
disturbing trend must change. The adoption of H.R. 2669 will help make 
college as affordable as possible for every qualified student who would 
like to earn an advanced degree, without new costs to taxpayers.
  H.R. 2669 would authorize an increase to the maximum value of the 
Pell Grant scholarship by $500 over the next five years. The 
legislation would also cut interest rates in half on need-based student 
loans, reducing the cost of those loans for millions of student 
borrowers. H.R. 2669, moreover, would prevent student borrowers from 
facing unmanageable levels of federal student debt. It does this by 
guaranteeing that borrowers will never have to spend more than 15 
percent of their yearly discretionary income on loan repayments and by 
allowing borrowers in economic hardship to have their loans forgiven 
after 20 years.
  H.R. 2669 also promotes the development of the next generation of 
high-quality teachers and public servants. It does this by authorizing 
tuition assistance for excellent undergraduate students who agree to 
teach in public schools and authorizing loan forgiveness for college 
graduates that enter public service professions.
  Of particular importance to my constituents is the Upward Bound 
program which seeks to increase high school completion, college 
participation, and graduation rates among low-income and first-
generation college students. H.R. 2669 would provide $228 million in 
funding over four years for Upward Bound, restoring critical funding 
for programs that were not funded in fiscal year 2007, as well as fund 
over 100 new programs. Students from minority communities--including 
the Asian and Pacific Islander American community--make up nearly 50 
percent of all Upward Bound participants.
  What is more, this legislation would make significant and needed 
investments in Historically Black Colleges and Universities, Hispanic 
Serving Institutions and other minority serving institutions. I commend 
my colleague from California (Mr. Miller) for his commitment to 
assisting the minority serving institutions. I do, however, have two 
concerns with respect to this aspect of H.R. 2669. I respectfully 
request that they be favorably considered as this legislation proceeds 
through the legislative process.
  First, section 311 of H.R. 2669 establishes categories of minority 
serving institutions that would be eligible to participate in a Centers 
of Excellence grant program that would provide funds to help recruit 
and prepare teachers. Institutions that traditionally serve Asian and 
Pacific Islander American students would benefit from eligibility for 
such grants. Unfortunately, the category Asian American and Pacific 
Islander-Serving Institution does not appear in the bill. I 
respectfully request that my colleagues support my efforts to make 
Asian American and Pacific Islander-Serving Institutions eligible for 
these grants.
  Second, section 411 of H.R. 2669 establishes a College Access 
Challenge grant program for eligible students from underserved 
populations who enter and complete college. The term ``State'' is 
defined under this section as each of the several States of the United 
States, the District of Columbia, and Puerto Rico. Students who attend 
institutions of higher education in the U.S. territories of Guam, 
American Samoa, the Virgin Islands, and the Commonwealth of the 
Northern Mariana Islands and the Freely Associated States (FAS)--the 
Republic of the Marshall Islands, the Federated States of Micronesia, 
and the Republic of Palau--would be prohibited from participating in 
this grant program as a result of the limited definition for the term 
``State.'' I respectfully request that my colleagues support the 
efforts to expand the definition of the term ``State'' in this section 
of H.R. 2669 to include the U.S. territories and the Freely Associated 
States.
  I support this bill. Its provisions will help ensure that many 
talented young Americans can afford the benefits of a college 
education. I urge my colleague to support H.R. 2669.
  Mr. HOEKSTRA. Mr. Speaker, I rise today in opposition to H.R. 2669, 
the College Cost Reduction Act of 2007. A classic Democrat bait and 
switch proposal.
  What the Democrats propose is a historic investment in student aid--
what they deliver is massive new entitlement spending on programs 
controlled and run by their friends.
  These new entitlement programs, which are exempt from annual 
congressional review, are replete with layers of bureaucracy, rules and 
regulations, and require virtually no accountability to the American 
taxpayer.
  If the Democrats were serious about stemming the dramatic rise in 
college education costs, they would not use a reconciliation bill--a 
vehicle meant for deficit reduction--to push their agenda.
  Yes, the legislation provides cuts to student loan providers 
estimated at $18.58 billion over 5 years, but instead of using that 
money to lower the deficit as is custom, this legislation actually 
spends $17.13 billion (almost 92 percent) during that same period on 
multiple programs--including 9 new areas of mandatory Federal 
entitlement spending.
  This bill will not improve access to higher education for low and 
middle-income Americans. In fact, it has the potential to cost student 
borrowers and their parents thousands of dollars more in interest on 
Federal student loans by wiping out the interest rate discounts 
currently available to borrowers. Furthermore, this legislation could 
lead to the elimination of consumer choice and lender competition, 
making it a boon to the Direct Loan Program.
  In recent years, the Direct Loan Program's market share has fallen to 
22 percent because schools have chosen to participate in the FFEL 
Program instead. Cutting the successful FFEL program is a back-handed 
way to increase the competitive position of direct lending, a program 
that up until now has been withering on the vine through the voluntary 
attrition of colleges.
  I urge my colleagues to join me in opposing H.R. 2669. Our students 
deserve more from us than to play politics with their college 
education.
  Ms. FOXX. Mr. Speaker, much of the $18 billion in new spending in the 
College Cost Reduction Act doesn't reduce the cost of college, but 
instead consists of new entitlements targeted at people who aren't even 
students. The bill cuts loan interest rates for those who have 
graduated from college--to the tune of $6.2 billion. This is less than 
the amount the bill allocates towards Pell Grants--a form of aid that 
actually goes to students.
  With so many new entitlements in this bill, I am concerned about the 
direction we are headed. Most of these new entitlements are given to 
institutions and to college graduates. The bill creates new TEACH 
Grants at a cost to taxpayers of $375 million. This new entitlement 
gives grants to colleges and universities. It doesn't cut the cost of 
college for students--instead it moves towards creating a system that 
discourages personal responsibility and has no congressional 
accountability.
  For instance, this bill expands a government program to repay the 
education loans of public sector employees. Public sector jobs include 
those in emergency management, government, public safety, law 
enforcement, public health, education, public social work, and public 
interest legal work. The current program repays loans remaining after 
25 years of payment, but the expanded program grants loan forgiveness 
after 10 years of repayment, dramatically decreasing borrowers' 
incentive to pay off their loans.
  Take for example a college graduate working in the public sector and 
making $35,000 a year. If he or she has $20,000 in debt upon 
graduation, this debt would be paid off within

[[Page 18528]]

25 years and the Federal Government would not have to pay off any 
remaining balance. But under the new terms the federal loan forgiveness 
comes at 10 years, which in this case means a payoff of more than 
$10,000.
  This is a new $10,000 entitlement that creates incentives which 
directly discourage people in public service jobs from investing their 
own money in college debt. Why would someone pay off his debt at a rate 
any faster than the absolute minimum if he or she knows that in 10 
years the Federal Government will come along and erase the remaining 
balance?
  I want Americans to have access to education, but I don't want this 
access to come at the cost of a new entitlement mentality and increased 
dependence on the Federal Government for meeting the cost of education. 
At a time when we face massive increases in the cost of entitlement 
programs, I question the responsibility of constructing a whole new set 
of entitlements that will saddle future generations with new layers of 
government spending and the higher taxes needed to fund these 
entitlements.
  Education is important for the success of this nation, but giving 
entitlements to institutions and college graduates is not the way to 
lower the cost of college. In fact, heaping helpings of new 
entitlements will do much to undermine our national success as we face 
an impending entitlement crisis in the coming decades.

  Scenario 1: Income-Contingent Repayment for Public Sector Employees 
    Under H.R. 2669, the College Cost Reduction Act (10 Year Period)


               repayment plan for public sector employees

       The Secretary shall forgive the balance due on any loan for 
     a borrower who makes 120 payments (monthly payments over a 
     ten year period) on such loan pursuant to income-contigent 
     repayment. And who is employed, and was employed for the 10-
     year period in which the borrower made the 120 payments, in a 
     public sector job. This includes full-time jobs in emergency 
     management, government, public safety, law enforcement, 
     public health, education (including early childhood 
     education), social work in a public child or family service 
     agency, or public interest legal services (including 
     prosecution or public defense).

----------------------------------------------------------------------------------------------------------------
                                                                        Borrower payments
                        Loan amount                             AGI       (over 10 year     Forgiveness\1\(after
                                                                             period)            the 10 years)
----------------------------------------------------------------------------------------------------------------
$20,000....................................................   $35,000        $20,887 ($174   $10,026 ($30,913
                                                                            monthly, 5.9%)             total)
20,000.....................................................    50,000         24,426 ($204     5,183 ($29,609
                                                                            monthly, 4.9%)             total)
20,000.....................................................    65,000         26,140 ($218  2,838 (28,978 total)
                                                                            monthly, 4.0%)
50,000.....................................................    35,000         28,700 ($239     57,138 (85,838
                                                                            monthly, 8.2%)             total)
50,000.....................................................    50,000         58,700 ($489    16,194 ($74,894
                                                                           monthly, 11.7%)             total)
50,000.....................................................    65,000        $65,350 ($545  7,093 (72,443 total)
                                                                           monthly, 10.0%)
----------------------------------------------------------------------------------------------------------------

             Scenario 2: Under Current Law (25 Year Period)

----------------------------------------------------------------------------------------------------------------
                                                                        Borrower payments
                        Loan amount                             AGI       (over 25 year     Forgiveness\1\(after
                                                                             period)            the 25 years)
----------------------------------------------------------------------------------------------------------------
$20,000....................................................   $35,000        $33,433 ($111  $0 ($33,433 total)
                                                                            monthly, 3.8%)
                                                                         [12,546 more than
                                                                                    10 yr]
20,000.....................................................    50,000         30,230 ($100  0 ($30,230 total)
                                                                            monthly, 2.4%)
                                                                       [5,804 more than 10
                                                                                       yr]
20,000.....................................................    65,000          29,198 ($97  0 ($29,198 total)
                                                                            monthly, 1.8%)
                                                                       [3,058 more than 10
                                                                                       yr]
50,000.....................................................    35,000         71,751 ($239   70,188 ($141,939
                                                                            monthly, 8.2%)             total)
                                                                         [43,051 more than
                                                                                    10 yr]
50,000.....................................................    50,000         77,263 ($257  0 ($77,263 total)
                                                                            monthly, 6.2%)
                                                                         [18,563 more than
                                                                                    10 yr]
50,000.....................................................    65,000         72,996 ($243  0 ($72,996 total)
                                                                            monthly, 4.5%)
                                                                       [9,646 more than 10
                                                                                       yr]
----------------------------------------------------------------------------------------------------------------
\1\Covers interest incurred, no cap on forgiveness (however, there if a threshold where you would be able to pay
  off your loan during the 10 year period and the forgiveness would not apply)

  Ms. McCOLLUM of Minnesota. Mr. Speaker, I rise in strong support of 
the College Cost Reduction Act and congratulate Speaker Pelosi and 
Chairman Miller for keeping our promise to students and their families 
by bringing this legislation to the floor.
  H.R. 2669 is the largest investment in higher education since the 
G.I. Bill. Currently, 200,000 potential students do not attend college 
because of the cost. Many more are unable to attend a four-year college 
and millions more graduate with an unsustainable level of debt. 
Democrats have made access to higher education a priority because it is 
a critical investment in the future of students and families, and 
because we recognize that our economy and our global competitiveness 
depend on this country maintaining a highly skilled workforce.
  In Minnesota, tuition at public universities has increased 57 percent 
since 2000. However, incomes for middle class families have not kept up 
with this growth. H.R. 2669 makes several important changes to make 
sure that students are not priced out of higher education. Every 
qualified student who wants to attend college should have that 
opportunity. And importantly, with this legislation we are able to do 
so without increasing the national debt burden for the students we are 
helping today.
  The College Cost Reduction Act will raise the maximum Pell Grant 
scholarship by $500. Along with the work of the Appropriations 
Committee this year, the maximum grant award will reach $5,100 by 2011. 
This is a critical increase for students after several years of this 
grant level remaining frozen at $4,050 while tuition costs soared.
  H.R. 2669 cuts interest rates on student loans in half which will 
reduce debt for millions of student borrowers. The average student 
savings will be $4,400 over the life of the loan. The bill also 
increases Federal loan limits, reducing the need for the more-expensive 
private loans, and requires that student loan payments are manageable 
for borrowers by ensuring that no one pays more than 15 percent of 
their discretionary income in loan repayments.
  H.R. 2669 recognizes that the salaries for some of the most important 
jobs in our communities--teachers, first responders, early childhood 
educators, law enforcement officers and others--do not always match the 
value of their work. This bill provides loan forgiveness and some 
upfront tuition assistance for students interested in a career in 
public service.
  By reducing very generous lender subsidies, this bill gives priority 
to students over profits without creating an undue burden for lenders. 
I urge my colleagues to join me in support of this critical 
legislation.
  The SPEAKER pro tempore. All time for debate on the bill has expired.


                    Amendment Offered by Mr. McKeon

  Mr. McKEON. Mr. Speaker, I have an amendment made in order at the 
desk.
  The SPEAKER pro tempore. The Clerk will designate the amendment.
  The text of the amendment is as follows:
  Part B amendment in the nature of a substitute printed in House 
Report 110-224 offered by Mr. McKeon:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Pell Grant Enhancement Act'' 
     .

     SEC. 2. REDUCTION OF LENDER INSURANCE PERCENTAGE.

       (a) Amendment.--Subparagraph (G) of section 428(b)(1) of 
     the Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(G)) is 
     amended to read as follows:
       ``(G) insures 95 percent of the unpaid principal of loans 
     insured under the program, except that--
       ``(i) such program shall insure 100 percent of the unpaid 
     principal of loans made with funds advanced pursuant to 
     section 428(j) or 439(q); and
       ``(ii) notwithstanding the preceding provisions of this 
     subparagraph, such program shall insure 100 percent of the 
     unpaid principal amount of exempt claims as defined in 
     subsection (c)(1)(G);''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect with respect to loans made on or after 
     October 1, 2007.

     SEC. 3. GUARANTEE AGENCY COLLECTION RETENTION.

       Clause (ii) of section 428(c)(6)(A) of the Higher Education 
     Act of 1965 (20 U.S.C. 1078(c)(6)(A)(ii)) is amended to read 
     as follows:
       ``(ii) an amount equal to 24 percent of such payments for 
     use in accordance with section 422B, except that--

       ``(I) beginning October 1, 2003 and ending September 30, 
     2007, this subparagraph shall be applied by substituting `23 
     percent' for `24 percent';
       ``(II) beginning October 1, 2007 and ending September 30, 
     2008, this subparagraph shall be applied by substituting `20 
     percent' for `24 percent';
       ``(III) beginning October 1, 2008 and ending September 30, 
     2010, this subparagraph shall be applied by substituting `18 
     percent' for `24 percent'; and
       ``(IV) beginning October 1, 2010, this subparagraph shall 
     be applied by substituting for `24 percent' a percentage 
     determined in accordance with the regulations of the 
     Secretary and equal to the average rate paid to collection 
     agencies that have contracts with the Secretary.''.

     SEC. 4. ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR 
                   LENDERS.

       (a) Elimination of Status.--Part B of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1071 et seq.) is 
     amended by striking section 428I (20 U.S.C. 1078-9).
       (b) Conforming Amendments.--Part B of title IV of such Act 
     is further amended--
       (1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))--
       (A) by striking subparagraph (D); and
       (B) by redesignating subparagraphs (E) through (H) as 
     subparagraphs (D) through (G), respectively; and

[[Page 18529]]

       (2) in section 438(b)(5) (20 U.S.C. 1087-1(b)(5)), by 
     striking the matter following subparagraph (B).
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2007.

     SEC. 5. REDUCTION OF LENDER SPECIAL ALLOWANCE PAYMENTS.

       Section 438(b)(2)(I) of the Higher Education Act of 1965 
     (20 U.S.C. 1087-1(b)(2)(I)) is amended by adding at the end 
     the following new clauses:
       ``(vi) Reduction for loans disbursed on or after october 1, 
     2007.--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 
     October 1, 2007, the special allowance payment computed 
     pursuant to this subparagraph shall be computed--

       ``(I) by substituting `2.0 percent' for `2.34 percent' each 
     place it appears in this subparagraph;
       ``(II) by substituting `1.4 percent' for `1.74 percent' in 
     clause (ii); and
       ``(III) by substituting `2.0 percent' for `2.64 percent' 
     each place it appears in clauses (iii) and (iv).''.

     SEC. 6. UNIT COST CALCULATION FOR GUARANTY AGENCY ACCOUNT 
                   MAINTENANCE FEES.

       Section 458(b) of the Higher Education Act of 1965 (20 
     U.S.C. 1087h(b)) is amended--
       (1) by striking ``Account'' and inserting the following:
       ``(1) For fiscal years 2006 and 2007.--For each of the 
     fiscal years 2006 and 2007, account''; and
       (2) by adding at the end the following new paragraph:
       ``(2) For fiscal year 2008 and succeeding fiscal years.--
       ``(A) Unit cost basis.--For fiscal year 2008 and each 
     succeeding fiscal year, the Secretary shall calculate the 
     account maintenance fees payable to guaranty agencies under 
     subsection (a)(3), on a per-loan cost basis in accordance 
     with subparagraph (B).
       ``(B) Determinations.--To determine the amount that shall 
     be paid under subsection (a)(3) per outstanding loan 
     guaranteed by a guaranty agency for fiscal year 2008 and 
     succeeding fiscal years, the Secretary shall--
       ``(i) establish the per-loan cost basis amount by--

       ``(I) dividing the total amount of account maintenance fees 
     paid under subsection (a)(3) in fiscal year 2006, by
       ``(II) the number of loans under part B that were 
     outstanding in that fiscal year; and

       ``(ii) determine on October 1 of fiscal year 2008 and each 
     subsequent fiscal year, and pay to each guaranty agency, an 
     amount equal to the product of the number of loans under part 
     B that are outstanding on October 1 of that fiscal year and 
     insured by that guaranty agency multiplied by--

       ``(I) the amount determined under clause (i); increased by
       ``(II) a percentage equal to the percentage increase in the 
     Consumer Price Index for Wage Earners (as determined by the 
     Bureau of Labor Statistics of the Department of Labor) 
     between the calendar quarter ending on June 30, 2006, and the 
     calendar quarter ending on the June 30 preceding such October 
     1 of such fiscal year.''.

     SEC. 7. TUITION SENSITIVITY.

       (a) Elimination of Tuition Sensitivity.--Section 401(b) of 
     the Higher Education Act of 1965 (20 U.S.C. 1070a(b)) is 
     amended--
       (1) by striking paragraph (3); and
       (2) by redesignating paragraphs (4) through (9) as 
     paragraphs (3) through (8), respectively.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on July 1, 2008.

     SEC. 8. MANDATORY PELL GRANT INCREASES.

       (a) Extension of Authority.--Section 401(a) (20 U.S.C. 
     1070a(a)) is amended by striking ``fiscal year 2004'' and 
     inserting ``fiscal year 2017''.
       (b) Funding for Increases.--Section 401(b) (20 U.S.C. 
     1070a(b)) is amended by adding at the end the following new 
     paragraph:
       ``(9) Additional funds.--
       ``(A) In general.--For an academic year, there are 
     authorized to be appropriated, and there are appropriated, 
     such sums as may be necessary to carry out subparagraph (B) 
     of this paragraph (in addition to any other amounts 
     appropriated to carry out this section and out of any money 
     in the Treasury not otherwise appropriated) the following 
     amounts:
       ``(i) $1,454,000,000 for fiscal year 2008;
       ``(ii) $1,915,000,000 for fiscal year 2009;
       ``(iii) $2,380,000,000 for fiscal year 2010;
       ``(iv) $2,845,000,000 for fiscal year 2011;
       ``(v) $3,386,000,000 for fiscal year 2012;
       ``(vi) $3,407,000,000 for fiscal year 2013;
       ``(vii) $3,443,000,000 for fiscal year 2014;
       ``(viii) $3,474,000,000 for fiscal year 2015;
       ``(ix) $3,502,000,000 for fiscal year 2016; and
       ``(x) $3,526,000,000 for fiscal year 2017.
       ``(B) Increase in federal pell grants.--The amounts made 
     available pursuant to subparagraph (A) of this paragraph 
     shall be used to increase the amount of the maximum Pell 
     Grant for which a student shall be eligible during an award 
     year, as specified in the last enacted appropriation Act 
     applicable to that award year, by--
       ``(i) $350 for award year 2008-2009;
       ``(ii) $450 for award year 2009-2010;
       ``(iii) $550 for award year 2010-2011;
       ``(iv) $650 for award year 2011-2012; and
       ``(v) $750 for each of the award years 2012-2013 through 
     2017-2018.''.
       (c)  Authorized Maximums.--Section 401(b)(2)(A) (20 U.S.C. 
     1070a(b)(2)(A)) is amended to read as follows:
       ``(2)(A) The amount of the Federal Pell Grant for a student 
     eligible under this part shall be for each of the award years 
     2008-2009 through 2016-2017, the sum of--
       ``(i) the amount appropriated in the applicable 
     appropriation Act for the maximum Federal Pell Grant for that 
     award year; and
       ``(ii) the amount specified in subsection (a)(2)(B) for 
     that award year;

     less an amount equal to the amount determined to be the 
     expected family contribution with respect to that student for 
     that year.''.

     SEC. 9. PLUS LOAN INTEREST RATES.

       Paragraph (2) of section 427A(l) of the Higher Education 
     Act of 1965 (20 U.S.C. 1077a(l)(2)) is amended to read as 
     follows:
       ``(2) PLUS loans.--Notwithstanding subsection (h), with 
     respect to any loan under section 428B, the applicable rate 
     of interest--
       ``(A) shall be 8.5 percent on the unpaid principal balance 
     of any such loan for which the first disbursement is made on 
     or after July 1, 2006, and before July 1, 2008; and
       ``(B) shall be 7.9 percent on the unpaid principal balance 
     of any such loan for which the first disbursement is made on 
     or after July 1, 2008.''.

     SEC. 10. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN 
                   HIGHER EDUCATION.

       Section 131 of the Higher Education Act of 1965 (20 U.S.C. 
     1015) is amended to read as follows:

     ``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN 
                   HIGHER EDUCATION.

       ``(a) Purpose.--It is the purpose of this section to--
       ``(1) provide students and families with an easy-to-use, 
     comprehensive web-based tool for researching and comparing 
     institutions of higher education;
       ``(2) increase the transparency of college cost, price, and 
     financial aid; and
       ``(3) raise public awareness of information available about 
     postsecondary education, particularly among low-income 
     families, non-traditional student populations, and first-
     generation college students.
       ``(b) College Opportunity On-Line (COOL) Website Re-Design 
     Process.--In carrying out this section, the Commissioner of 
     Education Statistics--
       ``(1) shall identify the data elements that are of greatest 
     importance to prospective students, enrolled students, and 
     their families, paying particular attention to low-income, 
     non-traditional student populations, and first-generation 
     college students;
       ``(2) shall convene a group of individuals with expertise 
     in the collection and reporting of data related to 
     institutions of higher education to--
       ``(A) determine the relevance of particular data elements 
     to prospective students, enrolled students, and families;
       ``(B) assess the cost-effectiveness of various ways in 
     which institutions of higher education might produce relevant 
     data;
       ``(C) determine the general comparability of the data 
     across institutions of higher education;
       ``(D) make recommendations regarding the inclusion of 
     specific data items and the most effective and least 
     burdensome methods of collecting and reporting useful data 
     from institutions of higher education; and
       ``(3) shall ensure that the redesigned COOL website--
       ``(A) uses, to the extent practicable, data elements 
     currently provided by institutions of higher education to the 
     Secretary;
       ``(B) includes clear and uniform information determined to 
     be relevant to prospective students, enrolled students, and 
     families;
       ``(C) provides comparable information, by ensuring that 
     data are based on accepted criteria and common definitions;
       ``(D) includes a sorting function that permits users to 
     customize their search for and comparison of institutions of 
     higher education based on the information identified through 
     the process as prescribed in paragraph (1) as being of 
     greatest relevance to choosing an institution of higher 
     education.
       ``(c) Data Collection.--
       ``(1) Data system.--The Commissioner of Education 
     Statistics shall continue to redesign the relevant parts of 
     the Integrated Postsecondary Education Data System to include 
     additional data as required by this section and to continue 
     to improve the usefulness and timeliness of data collected by 
     such systems in order to inform consumers about institutions 
     of higher education.
       ``(2) College consumer profile.--The Secretary shall 
     continue to publish on the COOL website, for each academic 
     year and in accordance with standard definitions developed by 
     the Commissioner of Education Statistics (including 
     definitions developed under section 131(a)(3)(A) as in effect 
     on the day before the date of enactment of the College 
     Affordability and Transparency Act of 2007), from at least 
     all institutions of higher education participating in 
     programs under title IV the following information:

[[Page 18530]]

       ``(A) The tuition and fees charged for a first-time, full-
     time, full-year undergraduate student.
       ``(B) The room and board charges for a first-time, full-
     time, full-year undergraduate student.
       ``(C) The price of attendance for a first-time, full-time, 
     full-year undergraduate student, consistent with the 
     provisions of section 472.
       ``(D) The average amount of financial assistance received 
     by a first-year, full-time, full-year undergraduate student, 
     including--
       ``(i) each type of assistance or benefits described in 
     428(a)(2)(C)(ii);
       ``(ii) institutional and other assistance; and
       ``(iii) Federal loans under parts B, D, and E of title IV.
       ``(E) The number of first-time, full-time, full-year 
     undergraduate students receiving financial assistance 
     described in each clause of subparagraph (D).
       ``(F) The institutional instructional expenditure per full-
     time equivalent student.
       ``(G) Student enrollment information, including information 
     on the number and percentage of full-time and part-time 
     students, the number and percentage of resident and non-
     resident students.
       ``(H) Faculty-to-student ratios.
       ``(I) Faculty information, including the total number of 
     faculty and the percentage of faculty who are full-time 
     employees of the institution and the percentage who are part-
     time.
       ``(J) Completion and graduation rates of undergraduate 
     students, identifying whether the completion or graduation 
     rates are from a 2-year or 4-year program of instruction and, 
     in the case of a 2-year program of instruction, the 
     percentage of students who transfer to 4-year institutions 
     prior or subsequent to completion or graduation.
       ``(K) A link to the institution of higher education with 
     information of interest to students including mission, 
     accreditation, student services (including services for 
     students with disabilities), transfer of credit policies and, 
     if appropriate, placement rates and other measures of success 
     in preparing students for entry into or advancement in the 
     workforce.
       ``(L) The college affordability information elements 
     specified in subsection (d).
       ``(M) Any additional information that the Secretary may 
     require.
       ``(d) College Affordability Information Elements.--The 
     college affordability information elements required by 
     subsection (c)(2)(L) shall include, for each institution 
     submitting data--
       ``(1) the sticker price of the institution for the 3 most 
     recent academic years;
       ``(2) the net tuition price of the institution for the 3 
     most recent academic years;
       ``(3) the percentage change in both the sticker price and 
     the net tuition price over the 3-year time period that is 
     being reported;
       ``(4) the percentage change in the CPI over the same time 
     period; and
       ``(5) whether the institution has been placed on 
     affordability alert status as required by subsection (e)(3).
       ``(e) Outcomes and Actions.--
       ``(1) Response from institution.--Effective on June 30, 
     2008, an institution that increases its sticker price at a 
     percentage rate for any 3-year interval ending on or after 
     that date that exceeds two times the rate of change in the 
     CPI over the same time period shall provide a report to the 
     Secretary, in such a form, at such time, and containing such 
     information as the Secretary may require. Such report shall 
     be published by the Secretary on the COOL website, and shall 
     include--
       ``(A) a description of the factors contributing to the 
     increase in the institution's costs and in the tuition and 
     fees charged to students; and
       ``(B) if determinations of tuition and fee increases are 
     not within the exclusive control of the institution, a 
     description of the agency or instrumentality of State 
     government or other entity that participates in such 
     determinations and the authority exercised by such agency, 
     instrumentality, or entity.
       ``(2) Quality-efficiency task forces.--
       ``(A) Required.--Each institution subject to paragraph (1) 
     that has a percentage change in its sticker price that is in 
     the highest 5 percent of all institutions subject to 
     paragraph (1) shall establish a quality-efficiency task force 
     to review the operations of such institution.
       ``(B) Membership.--Such task force shall include 
     administrators, business and civic leaders, and faculty, and 
     may include students, trustees, parents of students, and 
     alumni of such institution.
       ``(C) Functions.--Such task force shall analyze 
     institutional operating costs in comparison with such costs 
     at other institutions within the class of institutions. Such 
     analysis should identify areas where, in comparison with 
     other institutions in such class, the institution operates 
     more expensively to produce a similar result. Any identified 
     areas should then be targeted for in-depth analysis for cost 
     reduction opportunities.
       ``(D) Report.--The results of the analysis by a quality-
     efficiency task force under this paragraph shall be made 
     available to the public on the COOL website.
       ``(3) Consequences for 2-year continuation of failure.--If 
     the Secretary determines that an institution that is subject 
     to paragraph (1)) has failed to reduce the subsequent 
     increase in sticker price below two times the rate of change 
     in the CPI for 2 consecutive academic years subsequent to the 
     3-year interval used under paragraph (1), the Secretary shall 
     place the institution on affordability alert status.
       ``(4) Exemptions.--Notwithstanding paragraph (3), an 
     institution shall not be placed on affordability alert status 
     if, for any 3-year interval for which sticker prices are 
     computed under paragraph (1)--
       ``(A) with respect the the class of institutions described 
     in paragraph (6) to which the institution belongs, the 
     sticker price of the institution is in the lowest quartile of 
     institutions within such class, as determined by the 
     Secretary, during the last year of such 3-year interval; or
       ``(B) the institution has a percentage change in its 
     sticker price computed under paragraph (1) that exceeds two 
     times the rate of change in the CPI over the same time 
     period, but the dollar amount of the sticker price increase 
     is less than $500.
       ``(5) Information to state agencies.--Any institution that 
     reports under paragraph (1)(B) that an agency or 
     instrumentality of State government or other entity 
     participates in the determinations of tuition and fee 
     increases shall, prior to submitting any information to the 
     Secretary under this subsection, submit such information to, 
     and request the comments and input of, such agency, 
     instrumentality, or entity. With respect to any such 
     institution, the Secretary shall provide a copy of any 
     communication by the Secretary with that institution to such 
     agency, instrumentality, or entity.
       ``(6) Classes of institutions.--For purposes of this 
     subsection, the classes of institutions shall be those 
     sectors used by the Integrated Postsecondary Education Data 
     System, based on whether the institution is public, nonprofit 
     private, or for-profit private, and whether the institution 
     has a 4-year, 2-year, or less than 2-year program of 
     instruction.
       ``(7) Data rejection.--Nothing in this subsection shall be 
     construed as allowing the Secretary to reject the data 
     submitted by an individual institution of higher education.
       ``(f) Information to the Public.--The Secretary shall work 
     with public and private entities to promote broad public 
     awareness, particularly among middle and high school students 
     and their families, of the information made available under 
     this section, including by distribution to students who 
     participate in or receive benefits from means-tested 
     federally funded education programs and other Federal 
     programs determined by the Secretary.
       ``(g) Fines.--In addition to actions authorized in section 
     487(c), the Secretary may impose a fine in an amount not to 
     exceed $25,000 on an institution of higher education for 
     failing to provide the information required by this section 
     in a timely and accurate manner, or for failing to otherwise 
     cooperate with the National Center for Education Statistics 
     regarding efforts to obtain data under subsections (c) and 
     (j) and pursuant to the program participation agreement 
     entered into under section 487.
       ``(h) GAO Study and Report.--
       ``(1) GAO study.--The Comptroller General shall conduct a 
     study of the policies and procedures implemented by 
     institutions in increasing the affordability of postsecondary 
     education. Such study shall include information with respect 
     to--
       ``(A) a list of those institutions that--
       ``(i) have reduced their sticker prices; or
       ``(ii) are within the least costly quartile of institutions 
     within each class described in subsection (e)(6);
       ``(B) policies implemented to stem the increase in tuition 
     and fees and institutional costs;
       ``(C) the extent to which room and board costs and prices 
     changed;
       ``(D) the extent to which other services were altered to 
     affect tuition and fees;
       ``(E) the extent to which the institution's policies 
     affected student body demographics and time to completion;
       ``(F) what, if any, operational factors played a role in 
     reducing tuition and fees;
       ``(G) the extent to which academic quality was affected, 
     and how;
       ``(H) if the institution is a public institution, the 
     relationship between State and local appropriations and the 
     institution's tuition and fees;
       ``(I) the extent to which policies and practices reducing 
     costs and prices may be replicated from one institution to 
     another; and
       ``(J) other information as necessary to determine best 
     practices in increasing the affordability of postsecondary 
     education.
       ``(2) Interim and final reports.-- The Comptroller General 
     shall submit an interim and a final report regarding the 
     findings of the study required by paragraph (1) to the 
     appropriate authorizing committees of Congress. The interim 
     report shall be submitted not later than July 31, 2011, and 
     the final report shall be submitted not later than July 31, 
     2013.
       ``(i) Student Aid Recipient Survey.--
       ``(1) Survey required.--The Secretary shall conduct a 
     survey of student aid recipients under title IV on a regular 
     cycle and

[[Page 18531]]

     State-by-State basis, but not less than once every 4 years--
       ``(A) to identify the population of students receiving 
     Federal student aid;
       ``(B) to describe the income distribution and other 
     socioeconomic characteristics of federally aided students;
       ``(C) to describe the combinations of aid from State, 
     Federal, and private sources received by students from all 
     income groups;
       ``(D) to describe the debt burden of educational loan 
     recipients and their capacity to repay their education debts, 
     and the impact of such debt burden on career choices;
       ``(E) to describe the role played by the price of 
     postsecondary education in the determination by students of 
     what institution to attend; and
       ``(F) to describe how the increased costs of textbooks and 
     other instructional materials affects the costs of 
     postsecondary education to students.
       ``(2) Survey design.--The survey shall be representative of 
     full-time and part-time, undergraduate, graduate, and 
     professional and current and former students in all types of 
     institutions, and designed and administered in consultation 
     with the Congress and the postsecondary education community.
       ``(3) Dissemination.--The Commissioner of Education 
     Statistics shall disseminate the information resulting from 
     the survey in both printed and electronic form.
       ``(j) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out the 
     provisions of this section.
       ``(k) Definitions.--For the purposes of this section:
       ``(1) Net tuition price.--The term `net tuition price' 
     means the average tuition and fees charged to a first-time, 
     full-time, full-year undergraduate student, minus the average 
     grants provided to such students, for any academic year.
       ``(2) Sticker price.--The term `sticker price' means the 
     average tuition and fees charged to a first-time, full-time, 
     full-year undergraduate student by an institution of higher 
     education for any academic year.
       ``(3) CPI.--The term `CPI' means the Consumer Price Index-
     All Urban Consumers (Current Series).''.

     SEC. 11. COLLEGE AFFORDABILITY DEMONSTRATION PROJECT.

       (a) .--Part G of title IV is amended by inserting after 
     section 486 (20 U.S.C. 1093) the following new section:

     ``SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROJECT.

       ``(a) Purpose.--It is the purpose of this section--
       ``(1) to provide, through a college affordability 
     demonstration project, for increased innovation in the 
     delivery of higher education and student financial aid in a 
     manner resulting in reduced costs for students as well as the 
     institution by employing one or more strategies including 
     accelerating degree or program completion, increasing 
     availability of, and access to, distance components of 
     education delivery, engaging in collaborative arrangements 
     with other institutions and organizations, and other 
     alternative methodologies; and
       ``(2) to help determine--
       ``(A) the most effective means of delivering student 
     financial aid as well as quality education;
       ``(B) the specific statutory and regulatory requirements 
     that should be altered to provide for more efficient and 
     effective delivery of student financial aid, as well as 
     access to high quality distance education programs, resulting 
     in a student more efficiently completing postsecondary 
     education; and
       ``(C) the most effective methods of obtaining and managing 
     institutional resources.
       ``(b) Demonstration Project Authorized.--
       ``(1) In general.--In accordance with the purposes 
     described in subsection (a) and the provisions of subsection 
     (d), the Secretary is authorized to select not more than 100 
     institutions of higher education, including those applying as 
     part of systems or consortia of such institutions, for 
     voluntary participation in the College Affordability 
     Demonstration Project in order to enable participating 
     institutions to carry out such purposes by providing programs 
     of postsecondary education, and making available student 
     financial assistance under this title to students enrolled in 
     those programs, in a manner that would not otherwise meet the 
     requirements of this title.
       ``(2) Waivers.--The Secretary is authorized to waive for 
     any institutions of higher education, or any system or 
     consortia of institutions of higher education, selected for 
     participation in the College Affordability Demonstration 
     Project, any requirements of this Act or the regulations 
     thereunder as deemed necessary by the Secretary to meet the 
     purpose described in subsection (a)(1), and shall make a 
     determination that the waiver can reasonably be expected to 
     result in reduced costs to students or institutions without 
     an increase in Federal program costs. The Secretary may not 
     waive under this paragraph the maximum award amounts for an 
     academic year or loan period.
       ``(3) Eligible applicants.--
       ``(A) Eligible institutions.--Except as provided in 
     subparagraph (B), only an institution of higher education 
     that is eligible to participate in programs under this title 
     shall be eligible to participate in the demonstration project 
     authorized under this section.
       ``(B) Prohibition.--An institution of higher education 
     described in section 102(a)(1)(C) shall not be eligible to 
     participate in the demonstration project authorized under 
     this section.
       ``(c) Application.--
       ``(1) In general.--Each institution or system of 
     institutions desiring to participate in the demonstration 
     project under this section shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require.
       ``(2) Contents of applications.--Each application for the 
     college affordability demonstration project shall include at 
     least the following:
       ``(A) a description of the institution or system or 
     consortium of institutions and what quality assurance 
     mechanisms are in place to ensure the integrity of the 
     Federal financial aid programs;
       ``(B) a description of the innovation or innovations being 
     proposed and the affected programs and students, including--
       ``(i) a description of any collaborative arrangements with 
     other institutions or organizations to reduce costs;
       ``(ii) a description of any expected economic impact of 
     participation in the project within the community in which 
     the institution is located; and
       ``(iii) a description of any means the institution will 
     employ to reduce the costs of instructional materials, such 
     as textbooks;
       ``(C) a description of each regulatory or statutory 
     requirement for which waivers are sought, with a reason for 
     each waiver;
       ``(D) a description of the expected outcomes of the program 
     changes proposed, including the estimated reductions in costs 
     both for the institution and for students;
       ``(E) an assurance from each institution in a system or 
     consortium of a commitment to fulfill its role as described 
     in the application;
       ``(F) an assurance that the participating institution or 
     system of institutions will offer full cooperation with the 
     ongoing evaluations of the demonstration project provided for 
     in this section; and
       ``(G) any other information or assurances the Secretary may 
     require.
       ``(d) Selection.--In selecting institutions to participate 
     in the demonstration project under this section, the 
     Secretary shall take into account--
       ``(1) the number and quality of applications received, 
     determined on the basis of the contents required by 
     subsection (c)(2);
       ``(2) the Department's capacity to oversee and monitor each 
     institution's participation;
       ``(3) an institution's--
       ``(A) financial responsibility;
       ``(B) administrative capability;
       ``(C) program or programs being offered via distance 
     education, if applicable;
       ``(D) student completion rates; and
       ``(E) student loan default rates; and
       ``(4) the participation of a diverse group of institutions 
     with respect to size, mission, and geographic distribution.
       ``(e) Notification.--The Secretary shall make available to 
     the public and to the authorizing committees a list of 
     institutions selected to participate in the demonstration 
     project authorized by this section. Such notice shall include 
     a listing of the specific statutory and regulatory 
     requirements being waived for each institution and a 
     description of the innovations being demonstrated.
       ``(f) Evaluations and Reports.--
       ``(1) Evaluation.--The Secretary shall evaluate the 
     demonstration project authorized under this section on a 
     biennial basis. Such evaluations specifically shall review--
       ``(A) the extent to which expected outcomes, including the 
     estimated reductions in cost, were achieved;
       ``(B) the number and types of students participating in the 
     programs offered, including the progress of participating 
     students toward recognized certificates or degrees and the 
     extent to which participation in such programs increased;
       ``(C) issues related to student financial assistance 
     associated with the innovations undertaken;
       ``(D) effective technologies and alternative methodologies 
     for delivering student financial assistance;
       ``(E) the extent of the cost savings to the institution, 
     the student, and the Federal Government resulting from the 
     waivers provided, and an estimate as to future cost savings 
     for the duration of the demonstration project;
       ``(F) the extent to which students saved money by 
     completing their postsecondary education sooner;
       ``(G) the extent to which the institution reduced its 
     tuition and fees and its costs by participating in the 
     demonstration project
       ``(H) the extent to which any collaborative arrangements 
     with other institutions or organizations have reduced the 
     participating institution's costs; and
       ``(I) the extent to which statutory or regulatory 
     requirements not waived under the demonstration project 
     present difficulties for students or institutions.
       ``(2) Policy analysis.--The Secretary shall review current 
     policies and identify those policies that present impediments 
     to the implementation of innovations that result in

[[Page 18532]]

     cost savings and in expanding access to education.
       ``(3) Reports.--The Secretary shall provide a report to the 
     authorizing committees on a biennial basis regarding--
       ``(A) the demonstration project authorized under this 
     section;
       ``(B) the results of the evaluations conducted under 
     paragraph (1);
       ``(C) the cost savings to the Federal Government by the 
     demonstration project authorized by this section; and
       ``(D) recommendations for changes to increase the 
     efficiency and effective delivery of financial aid.
       ``(g) Oversight.--In conducting the demonstration project 
     authorized under this section, the Secretary shall, on a 
     continuing basis--
       ``(1) ensure compliance of institutions or systems of 
     institutions with the requirements of this title (other than 
     the sections and regulations that are waived under subsection 
     (b)(2));
       ``(2) provide technical assistance to institutions in their 
     application to and participation in the demonstration 
     project;
       ``(3) monitor fluctuations in the student population 
     enrolled in the participating institutions or systems of 
     institutions;
       ``(4) monitor changes in financial assistance provided at 
     the institution; and
       ``(5) consult with appropriate accrediting agencies or 
     associations and appropriate State regulatory authorities.
       ``(h) Termination of Authority.--The authority of the 
     Secretary under this section shall cease to be effective on 
     October 1, 2012.''.

     SEC. 12. MULTIPLE GRANTS.

       (a) Amendment.--Paragraph (5) of section 401(b) (as 
     redesignated by section 7(a)(2) of this Act) is amended to 
     read as follows:
       ``(5) Year-round pell grants.--The Secretary is authorized, 
     for students enrolled in a baccalaureate degree, associate's 
     degree, or certificate program of study at an eligible 
     institution, to award such students not more than two Pell 
     grants during an award year to permit such students to 
     accelerate progress toward their degree or certificate 
     objectives by enrolling in courses for more than 2 semesters, 
     or 3 quarters, or the equivalent, in a given academic 
     year.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective July 1, 2009.

     SEC. 13. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY.

       Part G of title IV is amended by inserting after section 
     484B (20 U.S.C. 1091b) the following new section:

     ``SEC. 484C. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE 
                   DUTY.

       ``(a) Deferral of Loan Repayment Following Active Duty.--In 
     addition to any deferral of repayment of a loan made under 
     this title pursuant to section 428(b)(1)(M)(iii), 
     455(f)(2)(C), or 464(c)(2)(A)(ii), a borrower of a loan under 
     this title who is a member of the National Guard or other 
     reserve component of the Armed Forces of the United States, 
     or a member of such Armed Forces in a retired status, is 
     called or ordered to active duty, and is currently enrolled, 
     or was enrolled within six months prior to the activation, in 
     a program of instruction at an eligible institution, shall be 
     eligible for a deferment during the 13 months following the 
     conclusion of such service, except that a deferment under 
     this subsection shall expire upon the borrower's return to 
     enrolled student status.
       ``(b) Active Duty.--Notwithstanding section 481(d), in this 
     section, 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--
       ``(1) does not include active duty for training or 
     attendance at a service school; but
       ``(2) includes, in the case of members of the National 
     Guard, active State duty.''.

  The SPEAKER pro tempore. Pursuant to House Resolution 531, the 
gentleman from California (Mr. McKeon) and a Member opposed each will 
control 30 minutes.
  The Chair recognizes the gentleman from California.
  Mr. McKEON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, if bridging the gap between low-income students and 
their dream of a college education is a primary goal of this House, 
then this substitute should be adapted with ease. That's because this 
amendment nearly doubles the Pell Grant increase provided by the 
underlying bill.
  It makes Pell funding available year around for students seeking to 
finish their degrees more quickly by taking summer courses, which also 
makes a savings for them, and it eliminates a role that needlessly 
punishes students attending low-cost schools by limiting the amount of 
Pell Grant funds they can receive each year.
  First some background. Less than a third of savings in the underlying 
bill, roughly $6 billion, is directed to the most successful student 
aid program on the books today, the Pell Grant program.
  In fact, more funds under the base bill are directed toward those who 
are, by definition, no longer even students. This is done by 
temporarily phasing down interest rates on certain loans being repaid 
by college graduates.
  The remaining third of the bill triggers billions of dollars in new 
entitlement spending, including nine new areas of entitlement spending 
all together. In fact, some of this new spending is not even directed 
towards students, but rather to institutions, like colleges, 
universities, and philanthropic organizations.
  This Pell Grant substitute will tip the balance back toward low-
income students struggling to pay for their college education by 
increasing the maximum Pell Grant far more than the underlying bill. 
Specifically, it would provide for $9 billion in additional funding for 
Pell Grants over the next 5 years. Again, that's nearly double what the 
underlying bill would do.
  Here's how we do it. This Pell Grant proposal adopts the same cut to 
lender insurance rates from 97 to 95 percent as the underlying bill, 
while having the same goal of reducing administrative fees paid to 
guaranteed agencies as well.
  In addition, this substitute would save the Federal Government about 
$11 billion through lower special allowance payments.
  I believe this structural savings is far more responsible than the 
underlying bill which, much like the President's fiscal year 2008 
budget, fails to take into account the fact that Congress cut some $18 
billion from the student loan programs just last year.
  With these savings, more than $15 billion in total, this amendment 
corrects current law to equalize the Pell and direct loan rates for 
PLUS loans at 7.9 percent. It retains bipartisan language from the 
underlying bill to permit members of the Armed Forces the ability to 
defer their loans for up to 13 months upon returning from service.
  Most importantly, it invests more than $9 billion in the Pell Grant 
program. This investment would allow us to increase the maximum Pell 
Grant by $350 in 2008, compared to the smaller increase in the 
underlying bill, and by $100 for each year thereafter.
  On top of that, this measure would pay down the deficit by $5.74 
billion. That's more than three times what the underlying bill would 
dedicate toward deficit reduction.

                              {time}  1400

  Also included in this substitute are key college cost reforms, 
including the College Affordability and Transparency Act legislation 
that I introduced earlier this year to arm parents and students with 
more information about college costs than ever before. The measure also 
would take important steps to insist that colleges and universities be 
held more accountable for their role in the college cost crisis.
  Mr. Speaker, through my substitute amendment, we would increase Pell, 
decrease the deficit, more directly address college costs and put in 
place a handful of other student benefits without creating a single new 
entitlement program. We would accomplish all of this without creating a 
new maze of rules and regulations for students, parents and 
institutions to navigate. And, we would accomplish all of this without 
shortchanging the low-income students who need the most help to get on 
the ladder to achieve the American dream. I urge my colleagues to join 
me in supporting it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I claim the time in 
opposition to the amendment.
  The SPEAKER pro tempore. The gentleman is recognized for 30 minutes.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to 
the gentleman from Oregon (Mr. Wu), a member of the committee.
  Mr. WU. Mr. Speaker, I thank the chairman for yielding me the time.
  And with just a minute or two of time, one of the saddest moments, 
one of the two saddest moments in my relatively brief career here in 
the United States House was when this Chamber acted at the President's 
request to cut $12 billion from college financial aid.

[[Page 18533]]

That occurred the day after a State of the Union Address where the 
President talked about American competitiveness.
  Today, we take a bold step in rectifying that error. And I just want 
to refer a moment to the other saddest day of my thus far 8 years in 
the House of Representatives, and that was the decision in this Chamber 
to go to war in Iraq.
  Those were the two saddest moments in my congressional career: Begin 
a war in error, and now perpetuating a pride. But at least today, at 
this moment, we are having an opportunity to rectify, in my view, the 
other great error that we committed during my time in this Chamber, and 
that is the $12 billion cut that the Education Committee passed, the 
prior majority passed in this Chamber, and that went into effect 
without a necessary 60-vote majority in the Senate.
  Now, we can propose this greatest increase in college financial aid. 
We may or may not have the votes for cloture in the other Chamber, but 
this is the right thing to do. This is the right thing to do. It will 
make America more competitive. It will help individuals, and it will 
help our society, and we will rectify the errors we have made in the 
past one by one.
  I rise in support of the College Cost Reduction Act.
  Affordable access to quality post-secondary education is the best 
tool available to ensure success and the kind of career that can 
support a family. It is also critical that American students have the 
education that will help them remain competitive in an increasingly 
global and knowledge-based economy.
  The College Cost Reduction Act provides a major funding increase to 
assist students and their families achieve the goal paying for college, 
and much more--at no new expense to taxpayers. It provides tuition 
assistance to undergraduates who commit to teaching in low-income 
communities or high-need subject areas. It rewards those who serve 
their communities--first responders and law enforcement officers, for 
example, by providing loan forgiveness to those that serve others.
  Perhaps most importantly, the bill provides a major help to students 
in my home state of Oregon. The bill expands Pell Grant eligibility, 
and the maximum Pell Grant scholarship is increased over $500. This 
means nearly 70,000 Oregonians could benefit from the bill. This 
translates into $194 million dollars in aid to Oregon students and 
families over five years.
  College costs have skyrocketed over the past decade.
  The College Cost Reduction Act is instrumental in helping more 
Americans achieve their dream of a college education. I strongly 
support this bill, and urge my colleagues to do so as well.
  Mr. GEORGE MILLER of California. Mr. Speaker, I recognize the 
gentleman from New York (Mr. Bishop) for 5 minutes.
  Mr. BISHOP of New York. Mr. Speaker, I rise in opposition to the 
amendment of the ranking member, and I urge its defeat, and I urge our 
colleagues to vote in support of the underlying bill. I do so for 
several reasons; but before I talk about that, I would like to talk 
about some of the things that I have heard here today in the debate 
that disturbed me greatly and I think require being addressed.
  First is that I believe the ranking member, I am going to paraphrase 
him, but I think correctly said that we just can't help ourselves; that 
if you give us an opportunity to spend money, we are going to spend it. 
And I would rephrase that, and I would say that, we just can't help 
ourselves. If you give us an opportunity to solve a problem, we are 
going to solve it, and we are going to do so in a fiscally responsible 
way. And the problem that we are trying to solve with this underlying 
bill is diminished access and affordability to higher education, a 
problem which, if we leave unaddressed, is going to have a very serious 
consequence in terms of our future and in terms of our security. And we 
are addressing this problem, as I say, in a fiscally responsible way. 
It will not cost the taxpayers one dime.
  I have also heard a great deal of talk about how we are not 
addressing the issue of entitlement spending and how we are creating 
nine new entitlements. Our mandatory budget represents about 60 or 70 
percent of the total expenditures of this Nation, and it includes a 
number of so-called entitlement programs: Social Security, Medicare, 
Medicaid, interest on the national debt. And I would point out that, of 
all these programs, only one is truly mandatory, and that is interest 
on the national debt. And that number has ballooned over the last 6 
years under the watch of the then majority when they controlled every 
lever of power in this town.
  Fiscal year 2001, interest on the national debt was $200 billion a 
year. Fiscal year 2007, interest on the national debt is $265 billion a 
year. And the total debt has grown by $3 trillion.
  So I would simply say that it rings hollow to hear a lecture on 
fiscal responsibility and to be told that we are behaving in a way that 
is injurious to the American taxpayer when in fact our behavior is the 
antithesis of the behavior that has held sway this House for the last 6 
years.
  Now, with the amendment here is what we would not get if we were to 
pass Mr. McKeon's amendment: We would get no reduction in interest 
rates, a condition that would influence students' decisions to attend 
colleges. There would be no increase in the Federal capital 
contribution for the Perkins loan program. I will repeat; this is a 
loan program that this administration is trying earnestly to kill in 
what is a terribly ill-advised move.
  There is this notion out there that the Federal capital contribution 
for Perkins will increase availability of Perkins loans. And to correct 
a common misperception, the Perkins loan program is not duplicative of 
the FFEL program or of the Direct Lending program. In fact, a great 
many students borrow from both programs. There would be no investment 
in cooperative education, a program that exposes students to the world 
of work and help enriches their college experience. There would be no 
investment in placing a highly qualified teacher in every classroom, 
something that we absolutely must do if we are going to make the 
advances on the K-12 level that we simply must make, the advances that 
were contemplated by the No Child Left Behind legislation, advances 
that we now have the opportunity to put in place. And there would be 
diminished opportunity for students who are needy to pursue careers in 
public service and in not-for-profit. We cannot have a condition in 
which students choose their career based on their indebtedness, and 
this underlying legislation will address that.
  So I believe that the College Cost Reduction Act is, as I said 
before, long overdue, much needed and will address some very serious 
concerns that currently confront college students and their families, 
and will do so in a fiscally responsible way. And I urge its passage, 
and I urge defeat of the amendment by Mr. McKeon.
  Mr. McKEON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, let me say how relieved I am that the measure we are 
considering today does not incorporate the highly controversial STAR 
Act, which would turn over the entire Federal student loan program to 
Washington bureaucrats. I appreciate the chairman for not including 
that.
  I continue to strongly support healthy competition between the 
government-run Direct Loan program and the market-based Pell program, 
and doing anything to upset that competition would be terrible for 
students, parents and taxpayers alike. Nonetheless, I would be remiss 
if I did not express some concerns about the extent of the Pell cuts in 
H.R. 2669.
  After cutting some $18 billion from our student loan program during a 
budget reconciliation process in the last Congress, an additional cut 
of more than $18.75 billion this year strikes me as overreaching. 
Though this figure is close to the President's cut in his latest budget 
proposal, I believe the administration itself went too far and gave 
very little consideration to the impact of the cuts we made in the last 
Congress.
  I also believe supporters of H.R. 2669 did not take into account the 
impact the bill's cuts may have on student loan default rates. When I 
became chairman, 12 years ago, of this subcommittee over higher 
education, the

[[Page 18534]]

default rates were running about 25 percent. And through competition 
and the things that we have worked on during that time, we have cut 
that rate to where now the default rate is running at about 5 percent. 
If it gets back up to those higher ranges again, that is going to cost 
the American taxpayer another $11 billion a year.
  House Republicans are already on record as having supported savings 
from some of the lender subsidies, and there may well be room to go 
even further. Later today, in my substitute, I offer cutting $15 
billion, which is a little less than the underlying bill but may still 
be too high. Only time will tell. But we must be cautious to not 
overreach.
  The majority often takes aim at student lenders and seeks continual 
and excessive cuts as a way to punish them for daring to make a profit. 
You know, businesses have to make a profit or they don't remain in 
business. And if they don't remain in business and making loans to 
students, running about $70 billion a year now, if they don't continue 
to make those loans, some would say, well, then the direct lending 
program can take it over, which means the Department of Education, 
which there have been some criticisms of, would become the largest bank 
in the world, doing all of the student loan system. Early in my tenure 
here, they had to shut down their program because they couldn't keep 
up, and it was a much smaller program at the time. I have very great 
concerns of turning the whole student loan program over to the 
Department of Education.
  The real victims in all of this debate are the smaller lenders. The 
large lenders, which is kind of a paradox because they are the ones 
that we seem to be going after, they will survive, and they will even 
get better. The small lenders that help those that need the small 
loans, it takes about $7,000 for a lender to make a profit on these 
loans. In my community, kids going to the community colleges need a 
much smaller loan. The tuition, the fees and everything run less than 
$1,000 a year. And if they take out a loan to cover that, the lenders 
that are making that loan really aren't making any money; they are 
doing it as a service. They are not going to do that for long. When 
they keep getting hit with these kind of cuts, they will just get out 
of the program, and then, eventually, it will be turned over to the 
government-run program.
  Let me just give a couple of examples here of the things I am 
concerned about. The Navy Federal Credit Union right here in Virginia 
that holds $280 million in Federal loans; or San Miguel Federal Credit 
Union that holds $140 million; or Simmons First National Bank in Pine 
Bluff, Arkansas, that holds $86 billion; or Sovereign Bank in Reading, 
Pennsylvania, that holds $79 million; Commerce Bank and Trust in 
Topeka, Kansas, that holds $60 million; or Zion's First National Bank 
in Salt Lake with $67 million; will these lenders still be in a program 
offering loans to their local citizens, or will they be driven out of 
the program by large lenders such as Sallie Mae? That is something that 
time will tell as we keep cutting the subsidy that the Federal 
Government gives now to help these small businesses remain to give the 
help to those students that need the loans the very most.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to 
the gentleman from Kentucky (Mr. Yarmuth).
  Mr. YARMUTH. Mr. Speaker, in this great land of opportunity, wealth 
should not be a prerequisite for education, and it should not be a 
prerequisite for future success. For too many hardworking and qualified 
Americans, a college degree is the key to a successful career.

                              {time}  1415

  And for millions more, that education sends them so deep into debt 
that raising a family is impossible. The College Cost Reduction Act 
will respond to this injustice with an unparalleled commitment in 
higher education. 140,000 students and families will save more than 
$200 million on tuition costs in my home State of Kentucky alone.
  We've heard a lot during this debate from our colleagues on the other 
side throwing the word around of ``entitlement'' as if ``entitlement'' 
is a dirty word. And I will grant that over the years, some 
entitlements have not been particularly productive, but entitlements 
can also be significant investments in not only human capital but in 
the future of this country.
  And in this particular instance, what we are saying is we are going 
to make a dramatic step not just to improve the lives of millions of 
young Americans, but also to make an investment in their futures and 
the future of this economy. And if we don't do it, the great disparity 
in wealth between the most wealthy people in this country and everyone 
else will continue to grow, and we will face an economy in which we are 
not developing the type of talent that will keep this country at the 
stature that it has always maintained.
  So I am firmly against and urge my colleagues to vote against the 
amendment. I strongly support the College Cost Reduction Act because 
this is ultimately an investment in our future as a country, as a great 
nation, and the future of many Americans who without this help will be 
destined to a mundane future, which will mean that our country will 
result in the same state.
  Mr. McKEON. Mr. Speaker, I am happy to yield at this time to the 
gentlelady from Tennessee (Mrs. Blackburn) such time as she may 
consume.
  Mrs. BLACKBURN. Mr. Speaker, I want to thank the gentleman from 
California for the work that he has done on this. I also want to 
commend him for his appreciation for how we approach education and how 
we approach access to education in this country. His work in the 
committee has not gone unnoticed, and we do appreciate that commitment.
  I do rise today to support the McKeon substitute that we have before 
us, and I think that it addresses some of the problems that so many 
Members on both sides of the aisle have problems with in the underlying 
legislation. You cannot deny that there are nine new entitlement 
programs that are contained in the underlying legislation, and quite 
frankly, we have heard from so many people who have expressed concern 
over this.
  As we are at a time when people talk about the need to reduce the 
size of the Federal Government, to reduce the bureaucracy, to reduce 
the number of programs, here comes a piece of legislation, and lo and 
behold, you're going to have nine new programs.
  Now, quite frankly, Mr. Speaker, there are so many that say, why 
would you do this? Why would you not do an assessment of the needs and 
then put the money where the needs are?
  And Mr. McKeon has done that, as he has addressed the Pell Grants and 
spending the funding, increasing the Pell Grants, which address the 
access component that is so important to our students.
  Another component that is in there that I think many of the Members 
would be interested in is the changes that it makes in providing funds 
for year-round Pell Grants, there again answering a question and 
solving a problem that we hear from our constituents and the type Pell 
Grant program that they want, the access that they want, being certain 
that we're going to help those students who wish to pursue their 
education not only in the fall, not only in the spring, but the summer 
as well. We know that this is very important as people look at new type 
schedules, as they look at moving on through the educational process 
and getting into the workforce.
  We know that we have different areas where we need employment and 
being able to finish a little bit earlier. Not everybody wants to go on 
a 4- or 5-year program. There are some people that want to go through 
in a 3-year program, 3\1/2\-year program, and so this addresses a 
societal change and a need that is there that allows that flexibility 
that students want. And that is where we need to place the emphasis, 
allowing people to take control, individuals to take control and make 
decisions that are going to suit them and

[[Page 18535]]

not having the bureaucracy make those for them, which all too often, 
when we create nine new entitlement programs, with nine new 
bureaucracies, we don't see fast decision-making on something. We see 
this go into that black hole or the terminal put on hold that so many 
of our constituents continue to complain about every day.
  I would also like to commend to this body and thank Mr. McKeon for 
the work that puts the emphasis on our military by providing for them 
extended deferment options for our returning soldiers who may need 
extra time to get settled and to return to careers and be able to begin 
repaying any outstanding student loans. Certainly in my district, the 
Seventh District of Tennessee, this is something that has been 
recognized as a need. We have so many that have served so honorably 
with the 101st Airborne at Fort Campbell, and this is a provision that 
is important. It is one that is recognized by us, by the minority, by 
those of us on this side of the aisle, and it's one that we do express 
our thanks for being included.
  The McKeon amendment, the substitute is the right move. It is the 
right balance. It puts the funding where it is needed by increasing 
those Pell Grants, and I do rise in support of it, and I thank the 
gentleman for his work.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to 
the gentlewoman from Florida (Ms. Wasserman Schultz).
  Ms. WASSERMAN SCHULTZ. Mr. Speaker, I thank Chairman Miller for his 
recognition.
  I rise in support of the College Cost Reduction Act and want to thank 
my good friend, the chairman, for his leadership and the members of the 
committee for their exceptional work.
  While I am very supportive of the bill's overall goal, I have a 
concern that the bill incorporates the Bush administration's proposal 
to significantly cut the yield on all lenders across the board. 
Students and parents have saved millions of dollars due to smaller 
competitive lenders offering consolidation loans at lower interest 
rates. Greater competition leads to lower prices and more choices for 
the consumer.
  I do want to thank the chairman for his recognition of small lenders. 
And quite honestly, he's worked very, very hard to get the legislation 
to this point, and I know he continues to try to do that.
  I want to thank the chairman for eliminating the origination fee for 
small lenders because that's an important part of this bill as well. It 
will lower interest rates for students in the future. But we must 
ensure that individuals currently enrolled do not pay more when they're 
starting to repay their loans.
  I look forward to working with Chairman Miller and the ranking member 
and hope that this matter will be addressed in conference, and I know 
the chairman has committed to continue to try to do that. We must 
ensure that we help all students, parents and lenders equally and 
fairly.
  Mr. McKEON. Mr. Speaker, I am happy to yield 4 minutes to the 
gentleman from Louisiana (Mr. Boustany), a member of the committee.
  Mr. BOUSTANY. Mr. Speaker, I thank our ranking member for giving me 
time to speak on this.
  I rise in support of the McKeon substitute amendment, and I'm opposed 
to the underlying bill as it's written. Historically, our Federal 
Government has limited entitlement spending to programs like Medicare 
and Social Security, and we're still trying to work out or trying to 
figure out how to make those programs solvent and sustainable.
  The underlying bill creates nine new entitlement programs. And 
knowing that entitlement programs never die, we need to admit to the 
taxpayers that if this passes they will be expected to kick in another 
15 to $30 billion to cover the cost of these new entitlement programs 
starting in 2013.
  It also starts the precedent of creating entitlement programs for 
institutions and organizations. This act does little to reduce college 
costs and shortchanges those students who need help the most to pay for 
college. The bill spends less than one-third of the total savings on 
investing in low income students struggling to achieve their dreams of 
a college education.
  Rather than addressing the needs of our Nation's low income students, 
this bill spends billions of dollars on providing additional subsidies 
to institutions of higher education.
  I urge my colleagues to instead support the McKeon amendment, which 
would increase Pell Grants for our neediest students.
  The amendment, in addition, makes two significant improvements to the 
Pell Grant program. It provides funds for year-round Pell Grants to 
help those students who wish to pursue their education, not only in the 
fall and spring, but in summer as well.
  For too long, the student aid programs have only addressed the needs 
of traditional dependent students who attend fall and spring semester 
and then go home for summer. It's time that we do more to meet the 
needs of working adults and nontraditional students who need greater 
flexibility in pursuing their educational goals.
  The amendment reduces interest rates for parents and graduate 
students in the Pell program who now pay 8.5 percent instead of 7.9 
percent, which is paid by their peers in the direct loan program. 
There's simply no reason at all to charge parents and students 
different interest rates, and this problem needs to be addressed as 
soon as possible. I'm disappointed that my colleagues on the other side 
of the aisle did not see the need to help these parents and students 
who are being unfairly penalized under current law.
  Furthermore, this amendment also helps our military, as was mentioned 
earlier, by providing extended deferment options for our returning 
soldiers who may need extra time to get settled before repaying any 
outstanding student loans. This provision was included in the committee 
mark, and for that I'm grateful, and I think it's certainly a provision 
I support.
  And finally, the McKeon amendment addresses a concern that Mr. McKeon 
has been voicing for the last three or four years, and that concern has 
to do with rising costs of college. I'm happy to see that this 
amendment includes the text of Mr. McKeon's bill, H.R. 472, which 
brings much needed transparency to the college cost issue.
  As we all know, rising college costs are a major concern of parents 
across the country who find it more and more difficult to pay their 
tuition bills; yet no one can or will explain why costs continue to 
increase at rates far exceeding the rate of inflation. It's time to arm 
parents and students with information that can be used to make these 
wise choices in selecting an institution of higher learning.
  And for these reasons, I wholeheartedly support the McKeon amendment 
as a substitute to this bill, and urge passage of this very important 
amendment.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2\1/2\ minutes 
to the gentlewoman from Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in opposition to the 
amendment in the nature of a substitute for it undermines and it 
strikes all of the important initiatives that cause this legislation to 
be one of the imperative legislative initiatives of this Congress.
  It impacts negatively the middle class. It undermines the qualified 
teacher provision. It takes away the reward for public service and, of 
course, it does not deal with the issue of philanthropic participation 
in college retention and financing.
  But let me tell you what I am supporting. I am supporting the single 
largest increase in college funding, college aid since the GI Bill. I 
am supporting the mother who spoke to me on the way up to Washington 
saying, ``I'm a middle class, single parent, working to send my 
daughter to college, and I just can't do it. Does anybody understand 
that plea? I just can't do it.'' This helps this mother send her 
daughter to college!
  And what does this aid package do? This incentive package reinvests 
in America's young people! It reinvests by

[[Page 18536]]

strengthening the middle class, by making college more affordable. It 
increases the power of the Pell Grant through scholarship. It insures 
that we have qualified teachers in every classroom. It is an equal 
opportunity promoter of education for Americans.
  And then it does something unique. It does something that is not 
discriminatory. It reflects on the value of historically black 
colleges, Hispanic-serving colleges and other colleges that serve 
underserved populations.
  I know the real truth of that, representing Texas Southern University 
when our Governor could find no other way to solve the problem of that 
college other than to put it into a conservatorship. Isn't it 
interesting, Mr. Speaker, that if they had put it into a 
conservatorship, they would have lost all of their accreditation.
  This bill invests in helping to retain students. It gives them 
scholarships. It promotes the colleges.
  I don't know if this can be seen, but it is clear when we show this 
example of what Republicans have done in investing in our college 
education and what Democrats have done.

                              {time}  1430

  I know that my good friend on the other side of the aisle agrees with 
me that the education of our children is not a partisan issue. So I 
would encourage him to, if you will, ignore his motion for a substitute 
and support the underlying bill because colleges like Texas Southern 
University, Prairie View A&M and Morgan State and Florida A&M are 
grateful.
  I urge my colleagues to support this legislation.
  Mr. Speaker, I rise today in support of H.R. 2669, the Education and 
Labor College Cost Reduction Act of 2007. This bill does much more than 
ease the burden of student loans for college graduates--it will make 
the American dream possible for low- and middle-income students and 
families who pay for college. Mr. Speaker, in 21st-century America, a 
college education is critical for individual success and the strength 
of our Nation. Higher education is associated with better health, 
greater wealth, and more vibrant civic participation, as well national 
economic competitiveness in today's global environment. As the need for 
a college degree has grown, however, so has the cost of obtaining that 
education. The result is rising student debt.
  H.R. 2669 would provide about $18 billion in college financial aid at 
no new cost to taxpayers. This new investment is critical for African-
American students and their families, especially given that African-
American students comprise about 12 percent of all undergraduate 
students. Many institutions have helped black students bridge ethnic-
related economic barriers, making a college education possible for 
underprivileged minorities. Among historically black colleges and 
universities (HBCUs), which give African American students an 
opportunity to have an educational experience in a community in which 
they are a part of the majority, costs are also rising. This resolution 
would support many of these honorable institutions in their righteous 
deeds in educating our underprivileged students of color.
  Mr. Speaker, I support H.R. 2669 because it will increase the maximum 
Pell Grant award by $500 and increase eligibility to serve more 
students in the program. The Federal Pell Grant Program prides itself 
on providing need-based grants to low-income undergraduate and certain 
postbaccalaureate students to promote access to postsecondary 
education. Forty-five percent of African American and Hispanic students 
at 4-year colleges depend on Pell Grants, compared to 23 percent of all 
students. Approximately 4.5 million students currently depend on Pell 
Grants and ``over 70 percent of Pell Grant funds go to students from 
families with incomes of $20,000 a year or less''. Increasing the 
maximum Pell Grant Award will expand racial and ethnic diversity in 
higher education institutions, benefiting not only the institutions 
cultural background but it will also be a great learning experience for 
students to learn diverse cultural background different from their own.
  H.R. 2669 would cut the interest rates on need-based Federal student 
loans in half from 6.8 percent to 3-4 percent over 5 years. Once fully 
implemented, this cut would save the typical borrower--with about 
$13,800 in need-based loan debt--$4,400 over the life of the loan. 
About 38 percent of African-American students take out need-based 
student loans each year. By cutting interest rates on Federal loans, 
Congress can save college graduates thousands of dollars over the life 
of their loans. Mr. Speaker, recent graduates, especially those of 
minority status with low to moderate incomes, must spend the vast 
majority of their salaries on necessities such as rent, health care, 
and food. For borrowers struggling to cover basic costs, student loan 
repayment can create a significant and measurable impact on their 
lives.
  Crushing student debt also has societal consequences, according to a 
report by two highly respected economists, Drs. Saul Schwarz and Sandy 
Baum, the prospect of burdensome debt likely deters skilled and 
dedicated college graduates from entering and staying in important 
careers educating our Nation's children and helping the country's most 
vulnerable populations.
  To solve this problem and ensure that higher education remains within 
reach for all Americans, we need to increase need-based grant aid; make 
loan repayment fair and affordable; protect borrowers from usurious 
lending practices; and provide incentives for State governments and 
colleges to control tuition costs. H.R. 2669 is an important step in a 
new and right direction for America.
  I urge my colleagues to vote in favor of H.R. 2669, the Education and 
Labor College Cost Reduction Act of 2007.
  Mr. McKEON. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Washington, our newest mother in the House of Representatives, Cathy 
McMorris Rodgers.
  Mrs. McMORRIS RODGERS. Mr. Speaker, unfortunately, I rise in 
opposition to this bill.
  In my opinion, it continues some broken promises to us by the 
majority party. This bill is not fiscally responsible, and it is not 
going to increase access to college education in this country. Yes, it 
proposes to spend more money, nine new entitlement programs, that means 
nine new categories for mandatory spending, but not in ways that will 
increase access.
  I worked my way through college. I was the first in my family to 
graduate from college, and I am actually still paying some of those 
student loans from going back to school recently. And I am grateful for 
the opportunities I have had to go to college and am committed to 
ensuring that every student in America has access to higher education. 
It is really part of the American Dream. Unfortunately, this college 
relief bill does little to actually increase access.
  The Republican alternative would have roughly doubled the Pell Grant 
aid proposed in this bill. That is direct help to students when they 
need it, when they have to pay for tuition at the beginning of each 
quarter. Reducing interest rates will help graduates with debt relief, 
but it will not help students that are currently struggling to make 
tuition. The vast majority of spending in this bill provides token 
interest rate cuts for college graduates. Only one-third of the new 
spending goes towards Pell Grants.
  We must do more to fund new programs like Pell Grants, which actually 
do increase access and opportunities, and the McKeon substitute would 
do just that. We also must do more to address rising tuition costs and 
the impact that is having on students' ability to afford college.
  Tuition rates have risen above costs of inflation. Here is an example 
from my own State, Washington State: Over the past 10 years, Washington 
State University and the University of Washington have both increased 
tuition and fees by over 80 percent. At the same time, Washington's per 
capita of personal income has increased at only about 40 percent, and 
inflation is a little over 20 percent. We must address the root cause 
of this problem, what is really driving tuition costs. This bill does 
nothing to address the skyrocketing cost of tuition, which is 
disastrous for students and parents.
  The Democrats have talked a lot about providing college relief for 
students; yet, once again, this bill does more to help graduates and 
institutions rather than helping our current or future college 
students. Our focus must be on remaining sure that every person who 
wants to go to college has that opportunity to do so.
  Mr. GEORGE MILLER of California. Mr. Speaker, I am the only remaining 
speaker.
  Mr. McKEON. Mr. Speaker, could I inquire what our time remaining is.

[[Page 18537]]

  The SPEAKER pro tempore. The gentleman from California on the 
Republican side has 8\1/2\ minutes remaining. The gentleman from 
California on the Democratic side has 18 minutes remaining.
  Mr. McKEON. I am happy to yield such time as he may consume to the 
ranking member of the Higher Education Subcommittee, the gentleman from 
Florida (Mr. Keller).
  Mr. KELLER of Florida. Mr. Speaker, I thank the gentleman for 
yielding.
  I want to begin by thanking the chairman and also the ranking member 
for their hard work on this bill. Chairman Miller has accommodated us 
when he can and opposed us when he must, and I know we have worked 
together as much as possible.
  I think we owe the public an explanation, before we talk about our 
differences, of what we have in common. So let me begin with what both 
sides throughout this debate have in common, essentially three things.
  First, we believe that all children, rich or poor, should have the 
opportunity to go to college. Second, we believe that there should be 
consequences and sunlight on those colleges who excessively increase 
tuition. And, third, we believe that Pell Grants are the passport out 
of poverty for so many worthy young children from low- and moderate-
income families, and they deserve to be increased.
  Now, there are four major differences in this bill, and these 
differences result in many of us Republicans not being able, 
regrettably, to vote for this bill. The first difference is on 
entitlements. How do you feel about new mandatory entitlements? The 
Democratic bill has nine new entitlement programs with mandatory 
spending. The Republican substitute has zero new entitlement programs.
  How do you feel about Pell Grants, which is money we give to low- and 
moderate-income families to help their kids go to college? Today the 
Appropriations Committee is going to be increasing Pell Grants to 
$4,700. Under the Democrat bill, next year, they will have an 
additional $100, for a total of $4,800. Under the Republican 
substitute, students would have an additional $350 for a total of 
$5,050. So if you care about Pell Grants, you would do substantially 
better under the Republican bill if you were a student than you would 
under the Democrat bill.
  How do you feel about paying down the deficit? The Democrats use only 
$1.5 billion to pay down the deficit. We more than triple that in the 
Republican bill.
  How do you feel about private sector versus government-run programs? 
We have a basic, honest philosophical difference in this belief. 
Republicans believe that competition among the private sector is good 
for lower prices and lower taxes. Democrats believe, at least some do, 
that big government-run programs are better, and if that means 
eventually raising taxes, especially on the wealthy, then so be it. And 
we see that in the context of the student loan debate here. Republicans 
aren't afraid to take money out of the private student lenders. We did 
so as part of the Deficit Reduction Act. We took $16 billion away from 
their subsidies. But the Democrat bill, on top of the $16 billion, 
takes an additional $18.5 billion. It cuts the lender subsidies down to 
the bone to the point that the private student loan providers really 
won't be able to make a living if they are the small folks, and it will 
run many of them out of business. The big folks will stay in business. 
And that is okay to some on the other side. They prefer the direct 
student lending program. Under our system, 80 percent of the loans on 
the Federal level are provided with private sector money, called the 
FFEL program; 20 percent are the direct student loans. And this bill 
stacks it heavily in favor of the direct loan program. For example, if 
you are a low-income public sector employee, such as a police officer 
or social worker or a firefighter, and you have worked for at least 10 
years, you get absolute forgiveness of your loan only in the direct 
program. They don't forgive it in the private FFEL program. They want 
to encourage people in the direct program.
  If you are a parent and you want to take out a loan for your child to 
go to college, under the FFEL program, which is the private program, 
you have to pay 8.5 percent; under the direct lending program from the 
government, only 7.9 percent. Again, trying to encourage people to go 
with the big government program. And that was a drafting error that the 
Republican Congress made when we were passing the Deficit Reduction 
Act. And we tried to correct it in this bill. The Democrats knew about 
it, and they didn't let us correct it. And I suspect, and this is my 
feeling, it is because they expressly favor the direct loan program.
  So we have a philosophical difference. I think the motives on both 
sides are pure. We have an honest difference of opinion with regard to 
entitlements, Pell grant funding, paying down the debt and private 
sector involvement.
  And for these reasons, Mr. Speaker, I will urge my colleagues to vote 
``yes'' in favor of the McKeon substitute and ``no'' on the underlying 
bill.
  Mr. McKEON. How much time do I have remaining?
  The SPEAKER pro tempore. The gentleman from California has 4 minutes 
remaining.
  Mr. McKEON. Mr. Speaker, I again think that this has been an 
interesting debate today. I thank the chairman for giving us the 
opportunity to offer our substitute. I know he didn't have to do that, 
and I appreciate the opportunity to discuss some of the differences and 
to present an alternative.
  For years I served as subcommittee chairman on the Higher Education 
Subcommittee. And during that time, I talked about accessibility, 
accountability and affordability for higher education. The only 
opportunity that people have to better their lot in life here in this 
country is through education. And I have seen studies that show that 40 
percent of our young people from lower-income families are not able to 
go to college. And that is just not acceptable. And I think that with 
our substitute, where we put an additional almost $10 billion into Pell 
Grants, I think that is a tremendous opportunity to help the 
affordability aspect of college.
  Again, through this bill, there is nothing done to lower the cost of 
tuition, to make the higher education experience more affordable. As I 
said, the cost of a higher education during the last 20 years has gone 
up four times faster than the rate of inflation. Mrs. McMorris Rogers 
mentioned earlier, in her State, the cost of tuition has gone up in the 
last few years 80 percent while the cost of inflation has gone up 20 
percent. Again, that is still four times faster. It has gone up faster 
than the cost of health care. And I think that that is a crisis that in 
some way we need to come together on. State governments, the Federal 
Government, students, parents, we all need to come together, come to 
grips with this issue because to prepare a workforce that is going to 
carry us through this 21st Century and be competitive throughout the 
world, we are going to have to do something to make it possible for our 
young people to get a higher education.
  I don't think adding new entitlements is the way to do it. I think 
increasing Pell Grants is very important. And for that reason, I 
encourage our colleagues to support the amendment, the substitute 
amendment. If that passes, then support the bill. If it doesn't pass, I 
encourage them to vote against the underlying bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, if I can inquire how 
much time I have.
  The SPEAKER pro tempore. The gentleman from California has 18 minutes 
remaining.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself such 
time as I may consume.
  The SPEAKER pro tempore. The gentleman from California is recognized 
for up to 18 minutes.
  Mr. GEORGE MILLER of California. Mr. Speaker and members of the 
committee, I think this has been a very good debate because this has 
been a debate about which direction this country should go in and I 
believe will go in and the direction that the American people want this 
country to go in.

[[Page 18538]]

  Parents all over this Nation hear every day from business leaders, 
from educational leaders, from the media, they hear that for America to 
be competitive, we have got to have a smarter workforce, a better 
skilled workforce, a better equipped workforce so that we can continue 
America's leadership in the world in the economics of the world and in 
the national security of this country. The key to that workforce, the 
key to that competitiveness, again, the very people who are hiring 
those individuals say that you must have a college education. What used 
to be good enough, which was graduation from high school, is no longer 
good enough today. You have to have advanced learning. It may be in a 
professional school. It may be in a trade school. It may be in a 
community college. It may be in a 4-year college. You may get some of 
it now and some of it later. But the fact of the matter is, you need 
those skills.
  But what has happened over this time is that college education has 
increased as rapidly as anything else in society, in fact, more rapidly 
than many other indicators in our economy, over 35 to 40 percent over 
the last 5 years above inflation. What has that meant? That meant that 
families who thought they could afford that education now find that 
they have to squeeze harder. That meant that people who thought they 
weren't going to have to borrow money are now going to have to borrow 
money. That meant that people who thought they were going to be able to 
go to college are now deciding that they can no longer go to college. 
They are going to postpone it or maybe not go at all.

                              {time}  1445

  That's not good for America. That's not good for America's economy. 
That's not good for America's democratic institutions. And it's not 
good for our society. We need those young people to go to college.
  What this legislation does today is it says to those individuals who 
are fully qualified to go to college, we will not deny you access to 
the college of your choice, to the education of your choice, to the 
career of your choice, and to the curriculum of your choice because you 
can't afford to pay for it. We're going to help you. We're not going to 
give you everything you need. Your family is still going to have to 
sacrifice, you're still going to have to pay back loans, but we're 
going to give you greater access to the ability to do that.
  We're going to take this country in a new direction. We're going to 
take this country in a direction where we place a priority, a focus and 
a vision for education in America today because we know we must.
  We're told again by the leaders of all of the new technologies, the 
new companies, the people who are investing in the future that we were 
the beneficiaries of when John Kennedy said that he wanted to send a 
person to the Moon and bring them back safely. It was more than a Moon 
shot. John Kennedy captured our imagination; he captured world 
leadership with that decision. And over the next decade, we did exactly 
as he directed.
  But you know what else they did? They give 28,000 high-performing 
college students a grant to go to graduate school so they didn't have 
to borrow money, they didn't have to walk around with a tin cup, they 
didn't have to put themselves into debt, so they could use their best 
skills and talents to create the space program. You know what they 
created after they created the space program? They created Intel, they 
created Microsoft, they created Hewlett Packard. They created the 
infrastructure of this Nation. Now, did we whine and moan because they 
got a grant and the taxpayers used their money? They created millions 
of jobs in this country over the next four decades. That's what this is 
about.
  Those are the investments that my grandparents made in my education 
before they ever met me. Those are the investments that my parents made 
in my education after they met me. They still thought it was worth 
something. And those are the investments that have made this country 
the greatest and strongest Nation in the world, have made us an 
economic leader, and have given us the ability to lead the world. Do we 
want to turn our back on it now? If you accept this substitute, you're 
turning our back on that idea.
  The Republicans say, well, we're just going to take a little less 
money, but we're going to put it all in the Pell Grant. The 
Republicans, after flatlining Pell Grant all of these years when they 
had the opportunity to do something, did nothing. Now they want to love 
this bill to death by putting all the money in the Pell Grant.
  This is what this legislation will do for Pell recipients; it will 
take them up to $5,200 in a Pell Grant. That may or may not pay for 
their education for that year, but it's a big leap forward.
  But we also recognize something else, that this isn't the only 
constituency struggling to pay for education in this country. No, there 
are millions of students who will take out a subsidized student loan. 
And for those students, and their parents who will help them pay it 
back if they're that fortunate, for those students they will be paying 
for it by themselves, we're saying we will cut the interest rate in 
half when you graduate and you start to repay your loan. You borrow the 
money today, you pay your tuition, and when it comes time to pay your 
loan, your interest rate is half of what it is today.
  Because we know that those middle-income families in this country are 
struggling as hard as anybody. They have the same vision, the same hope 
and the same aspiration for their children. So that's why we're doing 
this, because it's the best investment we can make in this country in 
that talent of our children, in the brilliance and the excitement and 
the vision of those children. That's what this legislation is about. 
But that's not what this substitute legislation is about. You cannot 
walk away from them.
  I find it interesting that just 4 months ago, 5 months ago, 124 
Republicans voted to cut those interest rates for middle-income 
families and their children, and now they're going to vote against it 
today. So they voted for it then, and now they're going to vote against 
it today. What was going on? Did they believe it then, or they don't 
believe it now? Which is it? But the fact of the matter is, this is 
about whether or not those families that struggle, they may be single 
parents, they may be two in their family, they may be families that 
find themselves with one, two or three kids in college at the same 
time. This government should help them because those children will 
return that gift of this Nation back to this Nation time and time again 
over the life of their earnings, over their careers. They will give 
back to this Nation because we made that investment as my parents and 
grandparents made in us.
  If you vote for this substitute, you get rid of the interest rate 
cuts for those middle-income families. And also, for these very same 
Pell recipients, over half of these students will have to borrow money 
because a Pell Grant isn't enough. So they participate also in that 
interest rate cut.
  You fail to participate in the loan forgiveness for the teacher, for 
the firefighter, for the policeman, for the special education teacher, 
for first responders. For those people in critical occupations that 
give so much to this society, but they're not the highest paying jobs, 
we're telling them if you stay on the job 5 years, we will give you 
$5,000 in loan forgiveness. For a student that graduates with an 
average debt of around $13,000, $14,000, that's a significant amount of 
loan forgiveness. What do we get? We get an educated firefighter, an 
educated policeman, a school teacher. We get these people.
  For high-performing college students who are willing to go into 
teaching and go into math, science and engineering, and then go to the 
most difficult schools to teach, we're saying we will give you $4,000 a 
year in tuition assistance while you're in school, not later, up to 
$16,000; again, an investment, because we now know that a highly 
qualified teacher can dramatically change the educational outcomes and 
the future for the children in ways that we can only dream about. 
That's an important investment, because that investment in that teacher 
will be invested in all of those students that

[[Page 18539]]

come across his or her line of vision in those classes.
  That's why this legislation is about a vision for America. That's why 
this legislation goes in a different direction. We stop today when we 
flatline aid to education in this country. We want to invest in young 
people. We want their families to be able to invest with us. And that's 
the importance of this legislation.
  And, clearly, the commitment that we make to minority-serving 
institutions so that those students who are fully qualified to go to 
school go to school, receive the kind of help to keep them in school so 
they don't end up dropping out with a debt on the loans that they took. 
We want that success. It's a problem that's recognized across the 
country; we address it.
  We raise the cap on the amount of money that families can borrow. 
It's not great news to hear we let you borrow more, but it's a lot 
cheaper than if you have to borrow it in the private loan market. It's 
3.8 percent here, and it's 10, 12, 13, 14, 15 percent in the private 
market. That means a lot to families. That means a lot to students. 
That's what this legislation is about.
  I would ask all of my colleagues on both sides of the aisle to reject 
this substitute, to vote for the passage of the final bill. Let's take 
America to a new future. Let's take America to new heights. Let's take 
America to new greatness on the next generation of discoverers, of 
innovators, and of economic creators.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. Pursuant to House Resolution 531, the 
previous question is ordered on the bill, as amended, and on the 
amendment by the gentleman from California (Mr. McKeon).
  The question is on the amendment offered by the gentleman from 
California (Mr. McKeon).
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. McKEON. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  The vote was taken by electronic device, and there were--yeas 189, 
nays 231, not voting 11, as follows:

                             [Roll No. 611]

                               YEAS--189

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Bonner
     Bono
     Boozman
     Boustany
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Capito
     Carter
     Castle
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Lincoln
     Davis, Tom
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Emerson
     English (PA)
     Everett
     Fallin
     Feeney
     Ferguson
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gilchrest
     Gillmor
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Hall (TX)
     Hastert
     Hastings (WA)
     Hayes
     Heller
     Herger
     Hobson
     Hoekstra
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     LaTourette
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy, Tim
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Paul
     Pearce
     Peterson (PA)
     Pickering
     Pitts
     Platts
     Poe
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Royce
     Sali
     Saxton
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walberg
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (FL)

                               NAYS--231

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Cantor
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Giffords
     Gillibrand
     Gonzalez
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Hensarling
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jindal
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Klein (FL)
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McIntyre
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Pence
     Perlmutter
     Peterson (MN)
     Petri
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Wynn
     Yarmuth

                             NOT VOTING--11

     Berkley
     Blumenauer
     Blunt
     Boehner
     Cubin
     Davis, Jo Ann
     Dicks
     Hinojosa
     Porter
     Towns
     Young (AK)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised 2 
minutes remain in this vote.

                              {time}  1518

  Ms. CORRINE BROWN of Florida, Ms. HIRONO and Messrs. CAPUANO, 
ELLSWORTH and PENCE changed their vote from ``yea'' to ``nay.''
  Ms. ROS-LEHTINEN and Messrs. SHUSTER, NEUGEBAUER and BACHUS changed 
their vote from ``nay'' to ``yea.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                Motion to Recommit Offered by Mr. Roskam

  Mr. ROSKAM. Mr. Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. ROSKAM. I am, in its current form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Roskam moves to recommit the bill H.R. 2669 to the 
     Committee on Education and Labor with instructions to report 
     the same

[[Page 18540]]

     back to the House promptly with an amendment providing that a 
     borrower who is a full-time elected public official who 
     receives compensation for such elected position, or who is a 
     registered lobbyist at either the Federal or State level who 
     receives compensation for lobbying activities, shall be 
     ineligible for any of the loan forgiveness programs included 
     in the bill.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois (Mr. Roskam) is recognized for 5 minutes in support of his 
motion.
  Mr. ROSKAM. Mr. Speaker, I offer this motion to recommit with 
instructions, and it surrounds the general topic of student loan 
forgiveness. As we know, student loan forgiveness programs seek to help 
students with the cost of college or encourage them to enter a 
particular occupation or field.
  This was first put in place back in 1958 in the National Defense 
Education Act, and it was reenacted and made part of the Perkins loan 
program, and it provides forgiveness largely for borrowers who are 
employed in a specific public service job, including teachers, but over 
the years has added others as well.
  I would like to read a short list of those who are currently eligible 
under various programs for student loan forgiveness. They include: 
Public school teachers; Head Start staff, whether teachers or not; 
special education teachers; military members in combat areas; 
volunteers in the Peace Corps; law enforcement officers; correction 
officers; teachers in specific areas who are teaching in math, science, 
foreign language or bilingual education; nurses; medical technicians; 
child care providers; family service agency workers; researchers at 
NIH; health professionals in the National Health Service Corps; 
AmeriCorp volunteers; National Civilian Corps volunteers; and VISTA 
volunteers.
  These loan forgiveness programs are so popular, in fact, that 43 
States currently have them. Congressional Research Service not long ago 
surveyed a whole host of financial aid officials across the country and 
came to the conclusion that these are very effective programs in 
meeting students' financial needs and particular workforce needs.
  Earlier this year, the House took on the challenge to expand loan 
forgiveness for prosecutors and public defenders, and clearly there is 
a good public purpose behind that.
  But now under the bill, Mr. Speaker, basically anyone who works for 
the government or a nonprofit organization would be eligible for loan 
forgiveness. I repeat that. Basically anyone who works for the 
government or a nonprofit organization would be eligible for loan 
forgiveness. So what does that mean? Does that mean that Members of 
Congress would be eligible for loan forgiveness? I don't know about 
you, Mr. Speaker, but nobody sent me here to expand loan forgiveness 
eligibility for Members of Congress. And, in fact, Members of Congress 
are eligible under this bill.
  Are members of State legislatures eligible for loan forgiveness under 
this bill? Yes.
  Are registered lobbyists who work for nonprofit organizations, are 
they eligible? Yes.
  Mr. Speaker, I would like us to look at some of the CEOs of nonprofit 
organizations and reflect on their compensation and how that would play 
into this eligibility question. According to the Charity Navigator, the 
former head of Planned Parenthood Federation of America made over half 
a million dollars, $500,000, and would that person be eligible? Yes, as 
would John Adams, the president of the Natural Resources Defense 
Counsel who makes almost $300,000 a year. The National Journal reported 
in 2004 that the median compensation for think tanks was $264,000 a 
year. Or how about this, $227,000 for education, government and welfare 
organizations.
  Does anybody really believe that these individuals need this kind of 
support from the taxpayers? My point is that this new blanket program 
for nonprofit organizations will give a number of well-to-do 
individuals a government handout that they don't need and our 
constituents should not have to fund.
  So the real question is whether this is the highest and best use of 
taxpayer dollars. Mr. Speaker, I would submit that it is not, so this 
motion to recommit is very simple. It would prohibit a borrower who is 
an elected full-time public official and is paid for that position, as 
well as a paid registered lobbyist at either the State or Federal 
level, from receiving any of the loan forgiveness available under this 
act, period. Very simple, very clear.
  I think we should speak clearly to the American taxpayers that we as 
elected officials are not trying to create some unfair advantage for 
ourselves, that we are not trying to reward ourselves, or our elected 
colleagues, nor any registered lobbyist, by giving away their hard-
earned taxpayer dollars to pay off student debts.
  Mr. Speaker, I urge my colleagues to support this amendment or to at 
least set some parameters of this big government program under this 
bill.
  Mr. Speaker, I yield back the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I rise in opposition to 
the motion.
  The SPEAKER pro tempore. The gentleman is recognized for 5 minutes.
  Mr. GEORGE MILLER of California. Mr. Speaker, this motion to recommit 
says this will not allow a public officeholder or a lobbyist to get 
loan forgiveness. This has never been raised, and if you don't want 
them to get it, write me a letter and we will take care of it.
  But what this does is this says that you must report this back 
promptly, so this kills this bill. This kills this bill. The greatest 
contribution to helping families pay for education since the GI bill, 
they want to kill it. Cutting interest rates in half for middle-income 
families, they want to kill it. You could have written the motion 
another way. You deliberately wrote it this way so you could kill this 
bill.
  What is it you don't like about this bill? You don't like the fact 
that while you were in power, after years of flatlining the Pell Grant, 
we finally have given the biggest increase in decades for the poorest 
kids in the country. You don't like that, so you want to kill the bill. 
You don't like the fact that we are going to take 5 million middle-
class kids and extend to them a loan with an interest rate that is cut 
in half while their families are struggling to get them through 
college. They are making sacrifices every year. You are going to do 
this. You are going to kill this bill? Are you proud of this amendment 
that you are going to try to kill this bill? Say it louder, that you 
are proud.
  What about loan forgiveness? This amendment supposedly is about loan 
forgiveness, but in the process, they kill loan forgiveness to 
firefighters and policemen and nurses and teachers of special education 
and people who hold our society together and make it work, they kill 
that. What is it they don't like about having a society that can help 
its children? What is it they don't like about partnering up with 
families who want to help pay their kids' education, that borrow money, 
that are told every day they have to save more for this education, and 
here we are giving them loan forgiveness. We are giving them loan 
forgiveness because they have chosen to go into a career that doesn't 
pay very well. We are giving them an interest rate cut that will save 
them $4,000. That loan forgiveness will save them $5,000.
  We are raising the amount of money that they can borrow, no great 
gift to their parents, money that they can borrow, but they don't have 
to go to the private market and pay 15 percent. They can pay 3.8 
percent.

                              {time}  1530

  That's what this legislation is about. What is it you don't 
understand about the American people's vision? Mr. Speaker, what is it 
they don't understand about the American people's vision for this 
country? What is it you don't understand that America wants to go in a 
new direction? What is it you don't understand about this vision of the 
future where we have faith in our children, where they have the 
confidence of their parents; they have the vision that their kids can 
succeed, that they can be the next generation of discoverers, of 
innovators, of those who

[[Page 18541]]

create economic opportunities and hire other people or get hired?
  That's the vision America wants, and it needs help to pay for that 
education, and this is what this legislation does. That's what this 
legislation does.
  Yes, we help those minority-serving institutions. I guess you don't 
like that either.
  And yes, we thought we would partner up with some of the richest 
people in the world who said that if you partner up, we think we can 
raise hundreds of millions of dollars for poor children. So we said, 
you raise $1, we'll match it with 50 cents. They're now telling us they 
think they can raise hundreds of millions of dollars of private money. 
Sounds kind of Republican to me, but what the hell, I don't know.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore. Members are reminded to address their 
remarks to the Chair.
  Mr. GEORGE MILLER of California. We've even got a multiplier in this 
bill. We tell high-achieving college students who are studying math, 
science and engineering, if you will commit to going in and teaching in 
the most difficult schools in this Nation, you will bring those talents 
to those kids, we'll give you $4,000 tuition relief while you're in 
school, not later. We know that that is a multiplier because we know 
the kids that are exposed to highly qualified and effective teachers 
can learn things that we can't believe of, and that's what gives back 
to this society.
  At the end of the day, maybe Speaker Pelosi said it best: The dollars 
we invest in this legislation, the dollars we invest in these young 
people, that we invest in their families, in their futures, in their 
competencies, comes back to us every year from the same group of people 
as they graduate. They return the gifts. They return this gift of the 
Nation.
  We're trying to do for this next generation, what my grandparents did 
for me, what my parents did for me. And those investments that they 
made in the college systems of this country, in the GI bill in this 
country, what did they do? They took America to the premier position in 
the world in economic leadership, in national security, in foreign 
affairs, took us to the first place in the world and has been there for 
50 years based upon that investment.
  America knows now that they need a new investment, and that's what 
this legislation is about. It's about a new investment for the next 
generation, the next generation of talent and competency and fearless 
and beautiful young people, beautiful young people who want their 
future to be as rewarding as all of ours have been. I ask you to vote 
``no'' on this amendment.


                        Parliamentary Inquiries

  Mr. WESTMORELAND. Mr. Speaker, parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman may state his parliamentary 
inquiry.
  Mr. WESTMORELAND. Mr. Speaker, parliamentary inquiry. If this motion 
to recommit is passed, it does not kill the legislation; does it not 
simply send it back to committee?
  Mr. GEORGE MILLER of California. Kills the legislation today.
  The SPEAKER pro tempore. The Chair will not interpret the motion. 
That is for Members to debate, not the Chair.
  Mr. WESTMORELAND. Further parliamentary inquiry, Mr. Speaker.
  The SPEAKER pro tempore. The gentleman will state his parliamentary 
inquiry.
  Mr. WESTMORELAND. Is the question I just asked not a procedure of 
this House as far as the Speaker is in control of this body, would he 
not be learned enough to know that if this motion passed, would it--
  The SPEAKER pro tempore. The Chair does not interpret a pending 
proposal.
  Mr. WESTMORELAND. Further parliamentary inquiry, if I read the motion 
to recommit correctly--
  The SPEAKER pro tempore. The Chair can affirm that the motion does 
not contemplate a report forthwith.
  Mr. WESTMORELAND. I'm sorry, sir?
  The SPEAKER pro tempore. Which part of that did the gentleman not 
understand?
  Mr. WESTMORELAND. Your answer.
  The SPEAKER pro tempore. The motion does not contemplate a report 
forthwith.
  Mr. WESTMORELAND. Further parliamentary inquiry, Mr. Speaker.
  The SPEAKER pro tempore. State your parliamentary inquiry.
  Mr. WESTMORELAND. If it's true that you don't have the facts right, 
you should just beat the podium?
  The SPEAKER pro tempore. The gentleman is out of order.
  For what purpose does the gentleman from California rise?
  Mr. GEORGE MILLER of California. The Chair responded to the 
parliamentary inquiry that it is not forthwith, that it precludes 
action on the bill today. Thank you.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. ROSKAM. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule 
XX, this 15-minute vote on the motion to recommit will be followed by a 
5-minute vote on passage of H.R. 2669, if ordered, and suspending the 
rules and passing H.R. 556.
  The vote was taken by electronic device, and there were--ayes 199, 
noes 223, not voting 9, as follows:

                             [Roll No. 612]

                               AYES--199

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Barrow
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Bonner
     Bono
     Boozman
     Boustany
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Tom
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Emerson
     English (PA)
     Everett
     Fallin
     Feeney
     Ferguson
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gilchrest
     Gillmor
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastert
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Jindal
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     LaTourette
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McKeon
     McMorris Rodgers
     McNerney
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy, Patrick
     Murphy, Tim
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Paul
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Sali
     Saxton
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walberg
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (FL)

                               NOES--223

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Bean
     Becerra
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Cooper

[[Page 18542]]


     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Giffords
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Klein (FL)
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McIntyre
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Peterson (MN)
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Wilson (OH)
     Woolsey
     Wu
     Wynn
     Yarmuth

                             NOT VOTING--9

     Bartlett (MD)
     Berkley
     Blumenauer
     Boehner
     Cubin
     Davis, Jo Ann
     Hinojosa
     Porter
     Young (AK)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised there 
are 2 minutes remaining on this vote.

                              {time}  1553

  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. GEORGE MILLER of California. Mr. Speaker, I demand a recorded 
vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 273, 
noes 149, not voting 9, as follows:

                             [Roll No. 613]

                               AYES--273

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Buchanan
     Butterfield
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castle
     Castor
     Chandler
     Clay
     Cleaver
     Clyburn
     Cohen
     Cole (OK)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Farr
     Fattah
     Ferguson
     Filner
     Forbes
     Fossella
     Frank (MA)
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gohmert
     Gonzalez
     Gordon
     Graves
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hall (TX)
     Hare
     Harman
     Hastings (FL)
     Hayes
     Heller
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Jindal
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Jones (NC)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (NY)
     Kirk
     Klein (FL)
     Knollenberg
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCaul (TX)
     McCollum (MN)
     McDermott
     McGovern
     McHugh
     McIntyre
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (MI)
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Peterson (MN)
     Petri
     Pomeroy
     Price (NC)
     Rahall
     Ramstad
     Rangel
     Regula
     Reichert
     Renzi
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tiahrt
     Tierney
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walsh (NY)
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Weller
     Wexler
     Whitfield
     Wilson (NM)
     Wilson (OH)
     Wolf
     Woolsey
     Wu
     Wynn
     Yarmuth

                               NOES--149

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Bonner
     Bono
     Boozman
     Boustany
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Carter
     Chabot
     Coble
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Tom
     Deal (GA)
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Everett
     Fallin
     Feeney
     Flake
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gillmor
     Gingrey
     Goode
     Goodlatte
     Granger
     Hastert
     Hastings (WA)
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson, Sam
     Jordan
     Keller
     King (IA)
     Kingston
     Kline (MN)
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     Lewis (CA)
     Lewis (KY)
     Linder
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCotter
     McCrery
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller, Gary
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Paul
     Pearce
     Pence
     Peterson (PA)
     Pickering
     Pitts
     Platts
     Poe
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Rehberg
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Sali
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Terry
     Thornberry
     Tiberi
     Walberg
     Walden (OR)
     Wamp
     Weldon (FL)
     Westmoreland
     Wicker
     Wilson (SC)
     Young (FL)

                             NOT VOTING--9

     Berkley
     Blumenauer
     Boehner
     Clarke
     Cubin
     Davis, Jo Ann
     Hinojosa
     Porter
     Young (AK)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised there 
are 2 minutes remaining in this vote.

                              {time}  1601

  Mr. SULLIVAN changed his vote from ``aye'' to ``no.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Ms. CLARKE. Mr. Speaker, on rollcall 613, the final passage of the 
College Cost Reduction Act, a bill I am proud to have been helpful in 
crafting, I was unavoidably detained. If I had been present, I would 
have proudly voted ``aye.''

[[Page 18543]]



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