[Congressional Record (Bound Edition), Volume 153 (2007), Part 14]
[Senate]
[Pages 19905-20007]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  HIGHER EDUCATION AMENDMENTS OF 2007

  The ACTING PRESIDENT pro tempore. Under the previous order, the 
Senate will proceed to the consideration of S. 1642, which the clerk 
will report.
  The assistant legislative clerk read as follows:

       A bill (S. 1642) to extend the authorization programs under 
     the Higher Education Act of 1965, and for other purposes.

  The Senate proceeded to consider the bill, which had been reported 
from the Committee on Health, Education, Labor, and Pensions, with an 
amendment to strike all after the enacting clause and insert in lieu 
thereof the following:

[[Page 19906]]



     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Higher 
     Education Amendments of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

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

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Additional definitions.
Sec. 102. General definition of institution of higher education.
Sec. 103. Definition of institution of higher education for purposes of 
              title IV programs.
Sec. 104. Protection of student speech and association rights.
Sec. 105. Accreditation and Institutional Quality and Integrity 
              Advisory Committee.
Sec. 106. Drug and alcohol abuse prevention.
Sec. 107. Prior rights and obligations.
Sec. 108. Transparency in college tuition for consumers.
Sec. 109. Databases of student information prohibited.
Sec. 110. Clear and easy-to-find information on student financial aid.
Sec. 111. Performance-based organization for the delivery of Federal 
              student financial assistance.
Sec. 112. Procurement flexibility.
Sec. 113. Institution and lender reporting and disclosure requirements.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality partnership grants.
Sec. 202. General provisions.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Program purpose.
Sec. 302. Definitions; eligibility.
Sec. 303. American Indian tribally controlled colleges and 
              universities.
Sec. 304. Alaska Native and Native Hawaiian-serving institutions.
Sec. 305. Native American-serving, nontribal institutions.
Sec. 306. Part B definitions.
Sec. 307. Grants to institutions.
Sec. 308. Allotments to institutions.
Sec. 309. Professional or graduate institutions.
Sec. 310. Authority of the Secretary.
Sec. 311. Authorization of appropriations.
Sec. 312. Technical corrections.

                      TITLE IV--STUDENT ASSISTANCE

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

Sec. 401. Federal Pell Grants.
Sec. 402. Academic competitiveness grants.
Sec. 403. Federal Trio Programs.
Sec. 404. Gaining early awareness and readiness for undergraduate 
              programs.
Sec. 405. Academic achievement incentive scholarships.
Sec. 406. Federal supplemental educational opportunity grants.
Sec. 407. Leveraging Educational Assistance Partnership program.
Sec. 408. Special programs for students whose families are engaged in 
              migrant and seasonal farmwork.
Sec. 409. Robert C. Byrd Honors Scholarship Program.
Sec. 410. Child care access means parents in school.
Sec. 411. Learning anytime anywhere partnerships.

             Part B--Federal Family Education Loan Program

Sec. 421. Federal payments to reduce student interest costs.
Sec. 422. Federal Consolidation Loans.
Sec. 423. Default Reduction Program.
Sec. 424. Reports to consumer reporting agencies and institutions of 
              higher education.
Sec. 425. Common forms and formats.
Sec. 426. Student loan information by eligible lenders.
Sec. 427. Consumer education information.
Sec. 428. Definition of eligible lender.
Sec. 429. Discharge and cancellation rights in cases of disability.

                  Part C--Federal Work-Study Programs

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

                     Part D--Federal Perkins Loans

Sec. 451. Program authority.
Sec. 452. Cancellation of loans for certain public service.

                         Part E--Need Analysis

Sec. 461. Cost of attendance.
Sec. 462. Definitions.

       Part F--General Provisions Relating to Student Assistance

Sec. 471. Definitions.
Sec. 472. Compliance calendar.
Sec. 473. Forms and regulations.
Sec. 474. Student eligibility.
Sec. 475. Statute of limitations and State court judgments.
Sec. 476. Institutional refunds.
Sec. 477. Institutional and financial assistance information for 
              students.
Sec. 478. Entrance counseling required.
Sec. 479. National Student Loan Data System.
Sec. 480. Early awareness of financial aid eligibility.
Sec. 481. Program participation agreements.
Sec. 482. Regulatory relief and improvement.
Sec. 483. Transfer of allotments.
Sec. 484. Purpose of administrative payments.
Sec. 485. Advisory Committee on student financial assistance.
Sec. 486. Regional meetings.
Sec. 487. Year 2000 requirements at the Department.

                       Part G--Program Integrity

Sec. 491. Recognition of accrediting agency or association.
Sec. 492. Administrative capacity standard.
Sec. 493. Program review and data.
Sec. 494. Timely information about loans.
Sec. 495. Auction evaluation and report.

                    TITLE V--DEVELOPING INSTITUTIONS

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

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. Findings.
Sec. 602. Graduate and undergraduate language and area centers and 
              programs.
Sec. 603. Undergraduate international studies and foreign language 
              programs.
Sec. 604. Research; studies.
Sec. 605. Technological innovation and cooperation for foreign 
              information access.
Sec. 606. Selection of certain grant recipients.
Sec. 607. American overseas research centers.
Sec. 608. Authorization of appropriations for international and foreign 
              language studies.
Sec. 609. Centers for international business education.
Sec. 610. Education and training programs.
Sec. 611. Authorization of appropriations for business and 
              international education programs.
Sec. 612. Minority foreign service professional development program.
Sec. 613. Institutional development.
Sec. 614. Study abroad program.
Sec. 615. Advanced degree in international relations.
Sec. 616. Internships.
Sec. 617. Financial assistance.
Sec. 618. Report.
Sec. 619. Gifts and donations.
Sec. 620. Authorization of appropriations for the Institute for 
              International Public Policy.
Sec. 621. Definitions.
Sec. 622. Assessment and enforcement.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Purpose.
Sec. 702. Allocation of Jacob K. Javits Fellowships.
Sec. 703. Stipends.
Sec. 704. Authorization of appropriations for the Jacob K. Javits 
              Fellowship Program.
Sec. 705. Institutional eligibility under the Graduate Assistance in 
              Areas of National Need Program.
Sec. 706. Awards to graduate students.
Sec. 707. Additional assistance for cost of education.
Sec. 708. Authorization of appropriations for the Graduate Assistance 
              in Areas of National Need Program.
Sec. 709. Legal educational opportunity program.
Sec. 710. Fund for the improvement of postsecondary education.
Sec. 711. Special projects.
Sec. 712. Authorization of appropriations for the fund for the 
              improvement of postsecondary education.
Sec. 713. Repeal of the urban community service program.
Sec. 714. Grants for students with disabilities.
Sec. 715. Applications for demonstration projects to ensure students 
              with disabilities receive a quality higher education.
Sec. 716. Authorization of appropriations for demonstration projects to 
              ensure students with disabilities receive a quality 
              higher education.
Sec. 717. Research grants.

                       TITLE VIII--MISCELLANEOUS

Sec. 801. Miscellaneous.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               Part A--Education of the Deaf Act of 1986

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

              Part B--United States Institute of Peace Act

Sec. 921. United States Institute of Peace Act.

[[Page 19907]]

            Part C--The Higher Education Amendments of 1998

Sec. 931. Repeals.
Sec. 932. Grants to States for workplace and community transition 
              training for incarcerated youth offenders.
Sec. 933. Underground railroad educational and cultural program.
Sec. 934. Olympic scholarships under the Higher Education Amendments of 
              1992.

                        Part D--Indian Education


               SUBPART 1--Tribal Colleges and Universities

Sec. 941. Reauthorization of the Tribally Controlled College or 
              University Assistance Act of 1978.


                    SUBPART 2--Navajo Higher Education

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

     SEC. 2. REFERENCES.

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

     SEC. 3. GENERAL EFFECTIVE DATE.

       Except as otherwise provided in this Act or the amendments 
     made by this Act, the amendments made by this Act shall take 
     effect on the date of enactment of this Act.

                      TITLE I--GENERAL PROVISIONS

     SEC. 101. ADDITIONAL DEFINITIONS.

       (a) Amendment.--Section 103 (20 U.S.C. 1003) is amended--
       (1) by redesignating paragraphs (9) through (16) as 
     paragraphs (13) through (20); respectively;
       (2) by redesignating paragraphs (4) through (8) as 
     paragraphs (7) through (11), respectively;
       (3) by redesignating paragraphs (1), (2), and (3) as 
     paragraphs (2), (4), and (5), respectively;
       (4) by inserting before paragraph (2) (as redesignated by 
     paragraph (2)) the following:
       ``(1) Authorizing committees.--The term `authorizing 
     committees' means the Committee on Health, Education, Labor, 
     and Pensions of the Senate and the Committee on Education and 
     Labor of the House of Representatives.'';
       (5) by inserting after paragraph (2) (as redesignated by 
     paragraph (3)) the following:
       ``(3) Critical foreign language.--The term `critical 
     foreign language' means each of the languages contained in 
     the list of critical languages designated by the Secretary in 
     the Federal Register on August 2, 1985 (50 Fed. Reg. 149, 
     31412; promulgated under the authority of section 212(d) of 
     the Education for Economic Security Act (repealed by section 
     2303 of the Augustus F. Hawkins-Robert T. Stafford Elementary 
     and Secondary School Improvement Amendments of 1988)), except 
     that in the implementation of this definition with respect to 
     a specific title, the Secretary may set priorities according 
     to the purposes of such title and the national security, 
     economic competitiveness, and educational needs of the United 
     States.'';
       (6) by inserting after paragraph (5) (as redesignated by 
     paragraph (3)) the following:
       ``(6) Distance education.--
       ``(A) In general.--Except as otherwise provided, the term 
     `distance education' means education that uses 1 or more of 
     the technologies described in subparagraph (B)--
       ``(i) to deliver instruction to students who are separated 
     from the instructor; and
       ``(ii) to support regular and substantive interaction 
     between the students and the instructor, synchronously or 
     asynchronously.
       ``(B) Inclusions.--For the purposes of subparagraph (A), 
     the technologies used may include--
       ``(i) the Internet;
       ``(ii) one-way and two-way transmissions through open 
     broadcast, closed circuit, cable, microwave, broadband lines, 
     fiber optics, satellite, or wireless communications devices;
       ``(iii) audio conferencing; or
       ``(iv) video cassette, DVDs, and CD-ROMs, if the cassette, 
     DVDs, and CD-ROMs are used in a course in conjunction with 
     the technologies listed in clauses (i) through (iii).''; and
       (7) by inserting after paragraph (11) (as redesignated by 
     paragraph (2)) the following:
       ``(12) Poverty line.--The term `poverty line' means the 
     poverty line (as defined in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a 
     family of the size involved.''.
       (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et 
     seq.) is amended--
       (1) in section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees'';
       (2) in section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), by 
     striking ``Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate'' and inserting ``authorizing 
     committees'';
       (3) in section 401(f)(3) (20 U.S.C. 1070a(f)(3)), by 
     striking ``to the Committee on Appropriations'' and all that 
     follows through ``House of Representatives'' and inserting 
     ``to the Committee on Appropriations of the Senate, the 
     Committee on Appropriations of the House of Representatives, 
     and the authorizing committees'';
       (4) in section 428 (20 U.S.C. 1078)--
       (A) in subsection (c)(9)(K), by striking ``House Committee 
     on Education and the Workforce and the Senate Committee on 
     Labor and Human Resources'' and inserting ``authorizing 
     committees'';
       (B) in the matter following paragraph (2) of subsection 
     (g), by striking ``Committee on Labor and Human Resources of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives'' and inserting ``authorizing 
     committees''; and
       (C) in subsection (n)(4), by striking ``Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Labor and Human Resources of the 
     Senate'' and inserting ``authorizing committees'';
       (5) in section 428A(c) (20 U.S.C. 1078-1(c))--
       (A) in the matter preceding subparagraph (A) of paragraph 
     (2), by striking ``Chairperson'' and all that follows through 
     ``House of Representatives'' and inserting ``members of the 
     authorizing committees'';
       (B) in paragraph (3), by striking ``Chairperson'' and all 
     that follows through ``House of Representatives'' and 
     inserting ``members of the authorizing committees''; and
       (C) in paragraph (5), by striking ``Chairperson'' and all 
     that follows through ``House of Representatives'' and 
     inserting ``members of the authorizing committees'';
       (6) in section 432 (20 U.S.C. 1082)--
       (A) in subsection (f)(1)(C), by striking ``the Committee on 
     Education and the Workforce of the House of Representatives 
     or the Committee on Labor and Human Resources of the Senate'' 
     and inserting ``either of the authorizing committees''; and
       (B) in the matter following subparagraph (D) of subsection 
     (n)(3), by striking ``Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Labor and Human Resources of the Senate'' and inserting 
     ``authorizing committees'';
       (7) in section 437(c)(1) (20 U.S.C. 1087(c)(1)), by 
     striking ``Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate'' and inserting ``authorizing 
     committees'';
       (8) in section 439 (20 U.S.C. 1087-2)--
       (A) in subsection (d)(1)(E)(iii), by striking ``advise the 
     Chairman'' and all that follows through ``House of 
     Representatives'' and inserting ``advise the members of the 
     authorizing committees'';
       (B) in subsection (r)--
       (i) in paragraph (3), by striking ``inform the Chairman'' 
     and all that follows through ``House of Representatives,'' 
     and inserting ``inform the members of the authorizing 
     committees'';
       (ii) in paragraph (5)(B), by striking ``plan, to the 
     Chairman'' and all that follows through ``Education and 
     Labor'' and inserting ``plan, to the members of the 
     authorizing committees'';
       (iii) in paragraph (6)(B)--

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

       (iv) in paragraph (8)(C), by striking ``implemented to the 
     Chairman'' and all that follows through ``House of 
     Representatives, and'' and inserting ``implemented to the 
     members of the authorizing committees, and to''; and
       (v) in the matter preceding subparagraph (A) of paragraph 
     (10), by striking ``days to the Chairman'' and all that 
     follows through ``Education and Labor'' and inserting ``days 
     to the members of the authorizing committees''; and
       (C) in subsection (s)(2)--
       (i) in the matter preceding clause (i) of subparagraph (A), 
     by striking ``Treasury and to the Chairman'' and all that 
     follows through ``House of Representatives'' and inserting 
     ``Treasury and to the members of the authorizing 
     committees''; and
       (ii) in subparagraph (B), by striking ``Treasury and to the 
     Chairman'' and all that follows through ``House of 
     Representatives'' and inserting ``Treasury and to the members 
     of the authorizing committees'';
       (9) in section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees'';
       (10) in section 482(d) (20 U.S.C. 1089(d)), by striking 
     ``Committee on Labor and Human Resources of the Senate and 
     the Committee on Education and Labor of the House of 
     Representatives'' and inserting ``authorizing committees'';
       (11) in section 483(c) (20 U.S.C. 1090(c)), by striking 
     ``Committee on Labor and Human Resources of the Senate and 
     the Committee on Education and the Workforce of the House of 
     Representatives'' and inserting ``authorizing committees'';
       (12) in section 485 (20 U.S.C. 1092)--
       (A) in subsection (f)(5)(A), by striking ``Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Labor and Human Resources of the 
     Senate'' and inserting ``authorizing committees''; and
       (B) in subsection (g)(4)(B), by striking ``Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Labor and Human Resources of the 
     Senate'' and inserting ``authorizing committees'';
       (13) in section 486 (20 U.S.C. 1093)--
       (A) in subsection (e), by striking ``Committee on Labor and 
     Human Resources of the Senate and the Committee on Education 
     and the Workforce of the House of Representatives'' and 
     inserting ``authorizing committees''; and
       (B) in subsection (f)(3)--

[[Page 19908]]

       (i) in the matter preceding clause (i) of subparagraph (A), 
     by striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees''; and
       (ii) in the matter preceding clause (i) of subparagraph 
     (B), by striking ``Committee on Labor and Human Resources of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives'' and inserting ``authorizing 
     committees'';
       (14) in section 487A(a)(5) (20 U.S.C. 1094a(a)(5)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees''; and
       (15) in section 498B(d) (20 U.S.C. 1099c-2(d))--
       (A) in paragraph (1), by striking ``Committee on Labor and 
     Human Resources of the Senate and the Committee on Education 
     and the Workforce of the House of Representatives'' and 
     inserting ``authorizing committees''; and
       (B) in paragraph (2), by striking ``Committee on Labor and 
     Human Resources of the Senate and the Committee on Education 
     and the Workforce of the House of Representatives'' and 
     inserting ``authorizing committees''.

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

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

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

       Section 102 (20 U.S.C. 1002) is amended--
       (1) by striking subclause (II) of subsection (a)(2)(A)(i) 
     and inserting the following:

       ``(II) the institution has or had a clinical training 
     program that was approved by a State as of January 1, 1992, 
     and has continuously operated a clinical training program in 
     not less than 1 State that is approved by such State;'';

       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (D), by inserting ``and'' after the 
     semicolon;
       (ii) in subparagraph (E), by striking ``; and'' and 
     inserting a period; and
       (iii) by striking subparagraph (F); and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Additional institutions.--The term `proprietary 
     institution of higher education' also includes a proprietary 
     educational institution in any State that, in lieu of the 
     requirement in section 101(a)(1), admits as regular students 
     persons--
       ``(A) who are beyond the age of compulsory school 
     attendance in the State in which the institution is located; 
     or
       ``(B) who will be dually or concurrently enrolled in the 
     institution and a secondary school.''; and
       (3) by striking subsection (c)(2) and inserting the 
     following:
       ``(2) Additional institutions.--The term `postsecondary 
     vocational institution' also includes an educational 
     institution in any State that, in lieu of the requirement in 
     section 101(a)(1), admits as regular students persons--
       ``(A) who are beyond the age of compulsory school 
     attendance in the State in which the institution is located; 
     or
       ``(B) who will be dually or concurrently enrolled in the 
     institution and a secondary school.''.

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

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

     SEC. 105. ACCREDITATION AND INSTITUTIONAL QUALITY AND 
                   INTEGRITY ADVISORY COMMITTEE.

       (a) In General.--Section 114 (20 U.S.C. 1011c) is amended 
     to read as follows:

     ``SEC. 114. ACCREDITATION AND INSTITUTIONAL QUALITY AND 
                   INTEGRITY COMMITTEE.

       ``(a) Establishment.--There is established in the 
     Department an Accreditation and Institutional Quality and 
     Integrity Advisory Committee (in this section referred to as 
     the `Committee') to assess the process of accreditation and 
     the institutional eligibility and certification of such 
     institutions under title IV.
       ``(b) Membership.--
       ``(1) In general.--The Committee shall have 15 members, of 
     which--
       ``(A) 5 members shall be appointed by the Secretary;
       ``(B) 5 members shall be appointed by the Speaker of the 
     House of Representatives upon the recommendation of the 
     majority leader and minority leader of the House of 
     Representatives; and
       ``(C) 5 members shall be appointed by the President pro 
     tempore of the Senate upon the recommendation of the majority 
     leader and minority leader of the Senate.
       ``(2) Qualifications.--Individuals shall be appointed as 
     members of the Committee on--
       ``(A) the basis of the individuals' experience, integrity, 
     impartiality, and good judgment;
       ``(B) from among individuals who are representatives of, or 
     knowledgeable concerning, education and training beyond 
     secondary education, representatives of all sectors and types 
     of institutions of higher education (as defined in section 
     102); and
       ``(C) on the basis of the individuals' technical 
     qualifications, professional standing, and demonstrated 
     knowledge in the fields of accreditation and administration 
     in higher education.
       ``(3) Terms of members.--The term of office of each member 
     of the Committee shall be for 6 years, except that any member 
     appointed to fill a vacancy occurring prior to the expiration 
     of the term for which the member's predecessor was appointed 
     shall be appointed for the remainder of such term.
       ``(4) Vacancy.--A vacancy on the Committee shall be filled 
     in the same manner as the original appointment was made not 
     later than 90 days after the vacancy occurred. If a vacancy 
     occurs in a position to be filled by the Secretary, the 
     Secretary shall publish a Federal Register notice soliciting 
     nominations for the position not later than 30 days after 
     being notified of the vacancy.
       ``(5) Initial terms.--The terms of office for the initial 
     members of the Committee shall be--
       ``(A) 2 years for members appointed under paragraph (1)(A);
       ``(B) 4 years for members appointed under paragraph (1)(B); 
     and
       ``(C) 6 years for members appointed under paragraph (1)(C).
       ``(6) Chairperson.--The members of the Committee shall 
     select a chairperson from among the members.
       ``(c) Functions.--The Committee shall--
       ``(1) advise the Secretary with respect to establishment 
     and enforcement of the standards of accrediting agencies or 
     associations under subpart 2 of part H of title IV;
       ``(2) advise the Secretary with respect to the recognition 
     of a specific accrediting agency or association;
       ``(3) advise the Secretary with respect to the preparation 
     and publication of the list of nationally recognized 
     accrediting agencies and associations;
       ``(4) advise the Secretary with respect to the eligibility 
     and certification process for institutions of higher 
     education under title IV, together with recommendations for 
     improvements in such process;
       ``(5) advise the Secretary with respect to the relationship 
     between--
       ``(A) accreditation of institutions of higher education and 
     the certification and eligibility of such institutions; and
       ``(B) State licensing responsibilities with respect to such 
     institutions; and
       ``(6) carry out such other advisory functions relating to 
     accreditation and institutional eligibility as the Secretary 
     may prescribe in regulation.
       ``(d) Meeting Procedures.--
       ``(1) Schedule.--
       ``(A) Biannual meetings.--The Committee shall meet not less 
     often than twice each year, at the call of the Chairperson.
       ``(B) Publication of date.--The Committee shall submit the 
     date and location of each meeting in advance to the 
     Secretary, and the Secretary shall publish such information 
     in the Federal Register not later than 30 days before the 
     meeting.
       ``(2) Agenda.--
       ``(A) Establishment.--The agenda for a meeting of the 
     Committee shall be established by the Chairperson and shall 
     be submitted to the members of the Committee upon 
     notification of the meeting.
       ``(B) Opportunity for public comment.--The agenda shall 
     include, at a minimum, opportunity for public comment during 
     the Committee's deliberations.
       ``(3) Secretary's designee.--
       ``(A) Attendance at meeting.--The Chairperson shall invite 
     the Secretary's designee to attend all meetings of the 
     Committee.
       ``(B) Role of designee.--The Secretary's designee may be 
     present at a Committee meeting to facilitate the exchange and 
     free flow of information between the Secretary and the 
     Committee. The designee shall have no authority over the 
     agenda of the meeting, the items on that agenda, or on the 
     resolution of any agenda item.

[[Page 19909]]

       ``(4) Federal advisory committee act.--The provisions of 
     the Federal Advisory Committee Act (5 U.S.C. App.) shall 
     apply to the Committee, except that section 14 of such Act 
     shall not apply.
       ``(e) Report and Notice.--
       ``(1) Notice.--The Secretary shall annually publish in the 
     Federal Register--
       ``(A) a list containing, for each member of the Committee--
       ``(i) the member's name;
       ``(ii) the date of the expiration of the member's term of 
     office; and
       ``(iii) the individual described in subsection (b)(1) who 
     appointed the member; and
       ``(B) a solicitation of nominations for each expiring term 
     of office on the Committee of a member appointed by the 
     Secretary.
       ``(2) Report.--Not later than September 30 of each year, 
     the Committee shall make an annual report to the Secretary, 
     the authorizing committees, and the public. The annual report 
     shall contain--
       ``(A) a detailed summary of the agenda and activities of, 
     and the findings and recommendations made by, the Committee 
     during the preceding fiscal year;
       ``(B) a list of the date and location of each meeting 
     during the preceding fiscal year;
       ``(C) a list of the members of the Committee and 
     appropriate contact information; and
       ``(D) a list of the functions of the Committee, including 
     any additional functions established by the Secretary through 
     regulation.
       ``(f) Termination.--The Committee shall terminate on 
     September 30, 2012.''.
       (b) Termination of NACIQI.--The National Advisory Committee 
     on Institutional Quality and Integrity, established under 
     section 114 of the Higher Education Act of 1965 (as such 
     section was in effect the day before the date of enactment of 
     this Act) shall terminate 90 days after such date.

     SEC. 106. DRUG AND ALCOHOL ABUSE PREVENTION.

       Section 120(a)(2) (20 U.S.C. 1011i(a)(2)) is amended--
       (1) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (2) by redesignating subparagraph (B) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (A) (as amended by 
     paragraph (1)) the following:
       ``(B) determine the number of drug and alcohol-related 
     incidents and fatalities that--
       ``(i) occur on the institution's property or as part of any 
     of the institution's activities; and
       ``(ii) are reported to the institution;
       ``(C) determine the number and type of sanctions described 
     in paragraph (1)(E) that are imposed by the institution as a 
     result of drug and alcohol-related incidents and fatalities 
     on the institution's property or as part of any of the 
     institution's activities; and''.

     SEC. 107. PRIOR RIGHTS AND OBLIGATIONS.

       Section 121(a) (20 U.S.C. 1011j(a)) is amended--
       (1) in paragraph (1), by striking ``1999 and for each of 
     the 4 succeeding fiscal years'' and inserting ``2008 and for 
     each succeeding fiscal year''; and
       (2) in paragraph (2), by striking ``1999 and for each of 
     the 4 succeeding fiscal years'' and inserting ``2008 and for 
     each succeeding fiscal year''.

     SEC. 108. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.

       Part C of title I (20 U.S.C. 1015) is amended by adding at 
     the end the following:

     ``SEC. 132. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.

       ``(a) Net Price.--In this section, the term `net price' 
     means the average yearly tuition and fees paid by a full-time 
     undergraduate student at an institution of higher education, 
     after discounts and grants from the institution, Federal 
     Government, or a State have been applied to the full price of 
     tuition and fees at the institution.
       ``(b) Higher Education Price Index.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Higher Education Amendments of 2007, the 
     Commission of the Bureau of Labor Statistics, in consultation 
     with the Commissioner of Education Statistics and 
     representatives of institutions of higher education, shall 
     develop higher education price indices that accurately 
     reflect the annual change in tuition and fees for 
     undergraduate students in the categories of institutions 
     listed in paragraph (2). Such indices shall be updated 
     annually.
       ``(2) Development.--The higher education price index under 
     paragraph (1) shall be developed for each of the following 
     categories:
       ``(A) 4-year public degree-granting institutions of higher 
     education.
       ``(B) 4-year private degree-granting institutions of higher 
     education.
       ``(C) 2-year public degree-granting institutions of higher 
     education.
       ``(D) 2-year private degree-granting institutions of higher 
     education.
       ``(E) Less than 2-year institutions of higher education.
       ``(F) All types of institutions described in subparagraphs 
     (A) through (E).
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as may be necessary.
       ``(c) Reporting.--
       ``(1) In general.--The Secretary shall annually report, in 
     a national list and in a list for each State, a ranking of 
     institutions of higher education according to such 
     institutions' change in tuition and fees over the preceding 2 
     years. The purpose of such lists is to provide consumers with 
     general information on pricing trends among institutions of 
     higher education nationally and in each State.
       ``(2) Compilation.--
       ``(A) In general.--The lists described in paragraph (1) 
     shall be compiled according to the following categories:
       ``(i) 4-year public institutions of higher education.
       ``(ii) 4-year private, nonprofit institutions of higher 
     education.
       ``(iii) 4-year private, for-profit institutions of higher 
     education.
       ``(iv) 2-year public institutions of higher education.
       ``(v) 2-year private, nonprofit institutions of higher 
     education.
       ``(vi) 2-year private, for-profit institutions of higher 
     education.
       ``(vii) Less than 2-year public institutions of higher 
     education.
       ``(viii) Less than 2-year private, nonprofit institutions 
     of higher education.
       ``(ix) Less than 2-year private, for-profit institutions of 
     higher education.
       ``(B) Percentage and dollar change.--The lists described in 
     paragraph (1) shall include 2 lists for each of the 
     categories under subparagraph (A) as follows:
       ``(i) 1 list in which data is compiled by percentage change 
     in tuition and fees over the preceding 2 years.
       ``(ii) 1 list in which data is compiled by dollar change in 
     tuition and fees over the preceding 2 years.
       ``(3) Higher education price increase watch lists.--Upon 
     completion of the development of the higher education price 
     indices described in paragraph (1), the Secretary shall 
     annually report, in a national list, and in a list for each 
     State, a ranking of each institution of higher education 
     whose tuition and fees outpace such institution's applicable 
     higher education price index described in subsection (b). 
     Such lists shall--
       ``(A) be known as the `Higher Education Price Increase 
     Watch Lists';
       ``(B) report the full price of tuition and fees at the 
     institution and the net price;
       ``(C) where applicable, report the average price of room 
     and board for students living on campus at the institution, 
     except that such price shall not be used in determining 
     whether an institution's cost outpaces such institution's 
     applicable higher education price index; and
       ``(D) be compiled by the Secretary in a public document to 
     be widely published and disseminated in paper form and 
     through the website of the Department.
       ``(4) State higher education appropriations chart.--The 
     Secretary shall annually report, in charts for each State--
       ``(A) a comparison of the percentage change in State 
     appropriations per enrolled student in a public institution 
     of higher education in the State to the percentage change in 
     tuition and fees for each public institution of higher 
     education in the State for each of the previous 5 years; and
       ``(B) the total amount of need-based and merit-based aid 
     provided by the State to students enrolled in a public 
     institution of higher education in the State.
       ``(5) Sharing of information.--The Secretary shall share 
     the information under paragraphs (1) through (4) with the 
     public, including with private sector college guidebook 
     publishers.
       ``(d) Net Price Calculator.--
       ``(1) Development.--Not later than 1 year after the date of 
     enactment of the Higher Education Amendments of 2007, the 
     Secretary shall, in consultation with institutions of higher 
     education, develop and make several model net price 
     calculators to help students, families, and consumers 
     determine the net price of an institution of higher 
     education, which institutions of higher education may, at 
     their discretion, elect to use pursuant to paragraph (3).
       ``(2) Categories.--The model net price calculators 
     described in paragraph (1) shall be developed for each of the 
     following categories:
       ``(A) 4-year public institutions of higher education.
       ``(B) 4-year private, nonprofit institutions of higher 
     education.
       ``(C) 4-year private, for-profit institutions of higher 
     education.
       ``(D) 2-year public institutions of higher education.
       ``(E) 2-year private, nonprofit institutions of higher 
     education.
       ``(F) 2-year private, for-profit institutions of higher 
     education.
       ``(G) Less than 2-year public institutions of higher 
     education.
       ``(H) Less than 2-year private, nonprofit institutions of 
     higher education.
       ``(I) Less than 2-year private, for-profit institutions of 
     higher education.
       ``(3) Use of net price calculator by institutions.--Not 
     later than 3 years after the date of enactment of the Higher 
     Education Amendments of 2007, each institution of higher 
     education that receives Federal funds under this Act shall 
     adopt and use a net price calculator to help students, 
     families, and other consumers determine the net price of such 
     institution of higher education. Such calculator may be--
       ``(A) based on a model calculator developed by the 
     Department; or
       ``(B) developed by the institution of higher education.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry

[[Page 19910]]

     out this subsection such sums as may be necessary.
       ``(e) Net Price Reporting in Application Information.--An 
     institution of higher education that receives Federal funds 
     under this Act shall include, in the materials accompanying 
     an application for admission to the institution, the most 
     recent information regarding the net price of the 
     institution, calculated for each quartile of students based 
     on the income of either the students' parents or, in the case 
     of independent students (as such term is described in section 
     480), of the students, for each of the 2 academic years 
     preceding the academic year for which the application is 
     produced.
       ``(f) Enhanced College Information Website.--
       ``(1) In general.--
       ``(A) In general.--Not later than 90 days after the date of 
     enactment of the Higher Education Amendments of 2007, the 
     Secretary shall contract with an independent organization 
     with demonstrated experience in the development of consumer-
     friendly websites to develop improvements to the website 
     known as the College Opportunities On-Line (COOL) so that it 
     better meets the needs of students, families, and consumers 
     for accurate and appropriate information on institutions of 
     higher education.
       ``(B) Implementations.--Not later than 1 year after the 
     date of enactment of the Higher Education Amendments of 2007, 
     the Secretary shall implement the improvements developed by 
     the independent organization described under subparagraph (A) 
     to the college information website.
       ``(2) University and college accountability network.--Not 
     later than 1 year after the date of enactment of the Higher 
     Education Amendments of 2007, the Secretary shall develop a 
     model document for annually reporting basic information about 
     an institution of higher education that chooses to 
     participate, to be posted on the college information website 
     and made available to institutions of higher education, 
     students, families, and other consumers. Such document shall 
     be known as the `University and College Accountability 
     Network' (U-CAN), and shall include, the following 
     information about the institution of higher education for the 
     most recent academic year for which the institution has 
     available data, presented in a consumer-friendly manner:
       ``(A) A statement of the institution's mission and 
     specialties.
       ``(B) The total number of undergraduate students who 
     applied, were admitted, and enrolled at the institution.
       ``(C) Where applicable, reading, writing, mathematics, and 
     combined scores on the SAT or ACT for the middle 50 percent 
     range of the institution's freshman class.
       ``(D) Enrollment of full-time, part-time, and transfer 
     students at the institution, at the undergraduate and (where 
     applicable) graduate levels.
       ``(E) Percentage of male and female undergraduate students 
     enrolled at the institution.
       ``(F) Percentage of enrolled undergraduate students from 
     the State in which the institution is located, from other 
     States, and from other countries.
       ``(G) Percentage of enrolled undergraduate students at the 
     institution by race and ethnic background.
       ``(H) Retention rates for full-time and part-time first-
     time first-year undergraduate students enrolled at the 
     institution.
       ``(I) Average time to degree or certificate completion for 
     first-time, first-year undergraduate students enrolled at the 
     institution.
       ``(J) Percentage of enrolled undergraduate students who 
     graduate within 2 years (in the case of 2-year institutions), 
     and 4, 5 and 6 years (in the case of 2 and 4-year 
     institutions).
       ``(K) Number of students who obtained a certificate or an 
     associate's, bachelor's, master's, or doctoral degree at the 
     institution.
       ``(L) The undergraduate major areas of study with the 
     highest number of degrees awarded.
       ``(M) The student-faculty ratio, and number of full-time, 
     part-time, and adjunct faculty at the institution.
       ``(N) Percentage of faculty at the institution with the 
     highest degree in their field.
       ``(O) The percentage change in total price in tuition and 
     fees and the net price for an undergraduate at the 
     institution in each of the preceding 5 academic years.
       ``(P) The total average yearly cost of tuition and fees, 
     room and board, and books and other related costs for an 
     undergraduate student enrolled at the institution, for--
       ``(i) full-time undergraduate students living on campus;
       ``(ii) full-time undergraduate students living off-campus; 
     and
       ``(iii) in the case of students attending a public 
     institution of higher education, such costs for in-State and 
     out-of-State students living on and off-campus.
       ``(Q) The average yearly grant amount (including Federal, 
     State, and institutional aid) for a student enrolled at the 
     institution.
       ``(R) The average yearly amount of Federal student loans, 
     and other loans provided through the institution, to 
     undergraduate students enrolled at the institution.
       ``(S) The total yearly grant aid available to undergraduate 
     students enrolled at the institution, from the Federal 
     Government, a State, the institution, and other sources.
       ``(T) The percentage of undergraduate students enrolled at 
     the institution receiving Federal, State, and institutional 
     grants, student loans, and any other type of student 
     financial assistance provided publicly or through the 
     institution, such as Federal work-study funds.
       ``(U) The average net price for all undergraduate students 
     enrolled at the institution.
       ``(V) The percentage of first-year undergraduate students 
     enrolled at the institution who live on campus and off 
     campus.
       ``(W) Information on the policies of the institution 
     related to transfer of credit from other institutions.
       ``(X) Information on campus safety required to be collected 
     under section 485(f).
       ``(Y) Links to the appropriate sections of the 
     institution's website that provide information on student 
     activities offered by the institution, such as 
     intercollegiate sports, student organizations, study abroad 
     opportunities, intramural and club sports, specialized 
     housing options, community service opportunities, cultural 
     and arts opportunities on campus, religious and spiritual 
     life on campus, and lectures and outside learning 
     opportunities.
       ``(Z) Links to the appropriate sections of the 
     institution's website that provide information on services 
     offered by the institution to students during and after 
     college, such as internship opportunities, career and 
     placement services, and preparation for further education.
       ``(3) Consultation.--The Secretary shall ensure that 
     current and prospective college students, family members of 
     such students, and institutions of higher education are 
     consulted in carrying out paragraphs (1) and (2).
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as may be necessary.
       ``(g) GAO Report.--The Comptroller General of the United 
     States shall--
       ``(1) conduct a study on the time and cost burdens to 
     institutions of higher education associated with completing 
     the Integrated Postsecondary Education Data System (IPEDS), 
     which study shall--
       ``(A) report on the time and cost burden of completing the 
     IPEDS survey for 4-year, 2-year, and less than 2-year 
     institutions of higher education; and
       ``(B) present recommendations for reducing such burden;
       ``(2) not later than 1 year after the date of enactment of 
     the Higher Education Amendments of 2007, submit to Congress a 
     preliminary report regarding the findings of the study 
     described in paragraph (1); and
       ``(3) not later than 2 years after the date of enactment of 
     the Higher Education Amendments of 2007, submit to Congress a 
     final report regarding such findings.''.

     SEC. 109. DATABASES OF STUDENT INFORMATION PROHIBITED.

       Part C of title I (20 U.S.C. 1015), as amended by section 
     108, is further amended by adding at the end the following:

     ``SEC. 133. DATABASE OF STUDENT INFORMATION PROHIBITED.

       ``(a) Prohibition.--Except as described in (b), nothing in 
     this Act shall be construed to authorize the development, 
     implementation, or maintenance of a Federal database of 
     personally identifiable information on individuals receiving 
     assistance under this Act, attending institutions receiving 
     assistance under this Act, or otherwise involved in any 
     studies or other collections of data under this Act, 
     including a student unit record system, an education bar code 
     system, or any other system that tracks individual students 
     over time.
       ``(b) Exception.--The provisions of subsection (a) shall 
     not affect the loan obligation enforcement activities 
     described in section 485B.
       ``(c) State Databases.--Nothing in this Act shall prohibit 
     a State or a consortium of States from developing, 
     implementing, or maintaining State-developed databases that 
     track individuals over time, including student unit record 
     systems that contain information related to enrollment, 
     attendance, graduation and retention rates, student financial 
     assistance, and graduate employment outcomes.''.

     SEC. 110. CLEAR AND EASY-TO-FIND INFORMATION ON STUDENT 
                   FINANCIAL AID.

       Part C of title I (as amended by sections 108 and 109) is 
     further amended by adding at the end the following:

     ``SEC. 134. CLEAR AND EASY-TO-FIND INFORMATION ON STUDENT 
                   FINANCIAL AID.

       ``(a) Prominent Display.--The Secretary shall ensure that a 
     link to current student financial aid information is 
     displayed prominently on the home page of the Department 
     website.
       ``(b) Enhanced Student Financial Aid Information.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Higher Education Amendments of 2007, the 
     Secretary shall contract with an independent organization 
     with demonstrated expertise in the development of consumer-
     friendly websites to develop improvements to the usefulness 
     and accessibility of the information provided by the 
     Department on college financial planning and student 
     financial aid.
       ``(2) Implementation.--Not later than 1 year after the date 
     of enactment of the Higher Education Amendments of 2007, the 
     Secretary shall implement the improvements developed by the 
     independent organization described under paragraph (1) to the 
     college financial planning and student financial aid website 
     of the Department.
       ``(3) Dissemination.--The Secretary shall make the 
     availability of the information on the website widely known 
     through a major media campaign and other forms of 
     communication.''.

     SEC. 111. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF 
                   FEDERAL STUDENT FINANCIAL ASSISTANCE.

       Section 141 (20 U.S.C. 1018) is amended--

[[Page 19911]]

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

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

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

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

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

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

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

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

       (C) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``the'' after ``PBO 
     and''; and
       (ii) in subparagraph (B), by striking ``Officer'' and 
     inserting ``Officers'';
       (D) in paragraph (3), by inserting ``students,'' after 
     ``consult with''; and
       (E) by adding at the end the following:
       ``(4) Briefing on enforcement of student loan provisions.--
     The Chief Operating Officer shall provide an annual briefing 
     to the members of the authorizing committees on the steps the 
     PBO has taken and is taking to ensure that lenders are 
     providing the information required under clauses (iii) and 
     (iv) of section 428(c)(3)(C) and sections 428(b)(1)(Z) and 
     428C(b)(1)(F).'';
       (4) in subsection (d)--
       (A) in paragraph (1), by striking the second sentence; and
       (B) in paragraph (5)--
       (i) in subparagraph (B), by striking ``paragraph (2)'' and 
     inserting ``paragraph (4)''; and
       (ii) in subparagraph (C), by striking ``this'';
       (5) in subsection (f)--
       (A) in paragraph (2), by striking ``to borrowers'' and 
     inserting ``to students, borrowers,''; and
       (B) in paragraph (3)(A), by striking ``(1)(A)'' and 
     inserting ``(1)'';
       (6) in subsection (g)(3), by striking ``not more than 25'';
       (7) in subsection (h), by striking ``organizational 
     effectiveness'' and inserting ``effectiveness'';
       (8) by striking subsection (i);
       (9) by redesignating subsection (j) as subsection (i); and
       (10) in subsection (i) (as redesignated by paragraph (9)), 
     by striking ``, including transition costs''.

     SEC. 112. PROCUREMENT FLEXIBILITY.

       Section 142 (20 U.S.C. 1018a) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``for information systems supporting the 
     programs authorized under title IV''; and
       (ii) by striking ``and'' after the semicolon;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) through the Chief Operating Officer--
       ``(A) to the maximum extent practicable, utilize 
     procurement systems that streamline operations, improve 
     internal controls, and enhance management; and
       ``(B) assess the efficiency of such systems and assess such 
     systems' ability to meet PBO requirements.'';
       (2) by striking subsection (c)(2) and inserting the 
     following:
       ``(2) Fee for service arrangements.--The Chief Operating 
     Officer shall, when appropriate and consistent with the 
     purposes of the PBO, acquire services related to the 
     functions set forth in section 141(b)(2) from any entity that 
     has the capability and capacity to meet the requirements set 
     by the PBO. The Chief Operating Officer is authorized to pay 
     fees that are equivalent to those paid by other entities to 
     an organization that provides services that meet the 
     requirements of the PBO, as determined by the Chief Operating 
     Officer.'';
       (3) in subsection (d)(2)(B), by striking ``on Federal 
     Government contracts'';
       (4) in subsection (g)--
       (A) in paragraph (4)(A)--
       (i) in the subparagraph heading, by striking ``Sole 
     source.--'' and inserting ``Single-source basis.--''; and
       (ii) by striking ``sole-source'' and inserting ``single-
     source''; and
       (B) in paragraph (7), by striking ``sole-source'' and 
     inserting ``single-source'';
       (5) in subsection (h)(2)(A), by striking ``sole-source'' 
     and inserting ``single-source''; and
       (6) in subsection (l), by striking paragraph (3) and 
     inserting the following:
       ``(3) Single-source basis.--The term `single-source basis', 
     with respect to an award of a contract, means that the 
     contract is awarded to a source after soliciting an offer or 
     offers from, and negotiating with, only such source (although 
     such source is not the only source in the marketplace capable 
     of meeting the need) because such source is the most 
     advantageous source for purposes of the award.''.

     SEC. 113. INSTITUTION AND LENDER REPORTING AND DISCLOSURE 
                   REQUIREMENTS.

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

 ``PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATIONAL 
                                 LOANS

     ``SEC. 151. DEFINITIONS.

       ``In this part:
       ``(1) Cost of attendance.--The term `cost of attendance' 
     has the meaning given the term in section 472.
       ``(2) Covered institution.--The term `covered 
     institution'--
       ``(A) means any educational institution that offers a 
     postsecondary educational degree, certificate, or program of 
     study (including any institution of higher education, as such 
     term is defined in section 102) and receives any Federal 
     funding or assistance; and
       ``(B) includes any employee or agent of the educational 
     institution or any organization or entity affiliated with, or 
     directly or indirectly controlled by, such institution.
       ``(3) Educational loan.--The term `educational loan' means 
     any loan made, insured, or guaranteed under title IV.
       ``(4) Educational loan arrangement.--The term `educational 
     loan arrangement' means an arrangement or agreement between a 
     lender and a covered institution--
       ``(A) under which arrangement or agreement a lender 
     provides or otherwise issues educational loans to the 
     students attending the covered institution or the parents of 
     such students; and
       ``(B) which arrangement or agreement--
       ``(i) relates to the covered institution recommending, 
     promoting, endorsing, or using educational loans of the 
     lender; and
       ``(ii) involves the payment of any fee or provision of 
     other material benefit by the lender to the institution or to 
     groups of students who attend the institution.
       ``(5) Lender.--The term `lender'--
       ``(A) means--
       ``(i) any lender--

       ``(I) of a loan made, insured, or guaranteed under part B 
     of title IV; and
       ``(II) that is a financial institution, as such term is 
     defined in section 509 of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6809); and

       ``(ii) in the case of any loan issued or provided to a 
     student under part D of title IV, the Secretary; and
       ``(B) includes any individual, group, or entity acting on 
     behalf of the lender in connection with an educational loan.
       ``(6) Officer.--The term `officer' includes a director or 
     trustee of an institution.

     ``SEC. 152. REQUIREMENTS FOR LENDERS AND INSTITUTIONS 
                   PARTICIPATING IN EDUCATIONAL LOAN ARRANGEMENTS.

       ``(a) Use of Lender Name.--A covered institution that 
     enters into an educational loan arrangement shall disclose 
     the name of the lender in documentation related to the loan.
       ``(b) Disclosures.--
       ``(1) Disclosures by lenders.--Before a lender issues or 
     otherwise provides an educational loan to a student, the 
     lender shall provide the student, in writing, with the 
     disclosures described in paragraph (2).
       ``(2) Disclosures.--The disclosures required by this 
     paragraph shall include a clear and prominent statement--
       ``(A) of the interest rates of the educational loan being 
     offered;
       ``(B) showing sample educational loan costs, disaggregated 
     by type;
       ``(C) that describes, with respect to each type of 
     educational loan being offered--

[[Page 19912]]

       ``(i) the types of repayment plans that are available;
       ``(ii) whether, and under what conditions, early repayment 
     may be made without penalty;
       ``(iii) when and how often interest on the loan will be 
     capitalized;
       ``(iv) the terms and conditions of deferments or 
     forbearance;
       ``(v) all available repayment benefits, the percentage of 
     all borrowers who qualify for such benefits, and the 
     percentage of borrowers who received such benefits in the 
     preceding academic year, for each type of loan being offered;
       ``(vi) the collection practices in the case of default; and
       ``(vii) all fees that the borrower may be charged, 
     including late payment penalties and associated fees; and
       ``(D) of such other information as the Secretary may 
     require in regulations.
       ``(c) Disclosures to the Secretary by Lender.--
       ``(1) In general.--Each lender shall, on an annual basis, 
     report to the Secretary any reasonable expenses paid or given 
     under section 435(d)(5)(D), 487(a)(21)(A)(ii), or 
     487(a)(21)(A)(iv) to any employee who is employed in the 
     financial aid office of a covered institution, or who 
     otherwise has responsibilities with respect to educational 
     loans or other financial aid of the institution. Such reports 
     shall include--
       ``(A) the amount of each specific instance in which the 
     lender provided such reimbursement;
       ``(B) the name of the financial aid official or other 
     employee to whom the reimbursement was made;
       ``(C) the dates of the activity for which the reimbursement 
     was made; and
       ``(D) a brief description of the activity for which the 
     reimbursement was made.
       ``(2) Report to congress.--The Secretary shall compile the 
     information in paragraph (1) in a report and transmit such 
     report to the authorizing committees annually.

     ``SEC. 153. INTEREST RATE REPORT FOR INSTITUTIONS AND LENDERS 
                   PARTICIPATING IN EDUCATIONAL LOAN ARRANGEMENTS.

       ``(a) Secretary Duties.--
       ``(1) Report and model format.--Not later than 180 days 
     after the date of enactment of the Higher Education 
     Amendments of 2007, the Secretary shall--
       ``(A) prepare a report on the adequacy of the information 
     provided to students and the parents of such students about 
     educational loans, after consulting with students, 
     representatives of covered institutions (including financial 
     aid administrators, registrars, and business officers), 
     lenders, loan servicers, and guaranty agencies;
       ``(B) include in the report a model format, based on the 
     report's findings, to be used by lenders and covered 
     institutions in carrying out subsections (b) and (c)--
       ``(i) that provides information on the applicable interest 
     rates and other terms and conditions of the educational loans 
     provided by a lender to students attending the institution, 
     or the parents of such students, disaggregated by each type 
     of educational loans provided to such students or parents by 
     the lender, including--

       ``(I) the interest rate and terms and conditions of the 
     loans offered by the lender for the upcoming academic year;
       ``(II) with respect to such loans, any benefits that are 
     contingent on the repayment behavior of the borrower;
       ``(III) the average amount borrowed from the lender by 
     students enrolled in the institution who obtain loans of such 
     type from the lender for the preceding academic year;
       ``(IV) the average interest rate on such loans provided to 
     such students for the preceding academic year; and
       ``(V) the amount that the borrower may repay in interest, 
     based on the standard repayment period of a loan, on the 
     average amount borrowed from the lender by students enrolled 
     in the institution who obtain loans of such type from the 
     lender for the preceding academic year; and

       ``(ii) which format shall be easily usable by lenders, 
     institutions, guaranty agencies, loan servicers, parents, and 
     students; and
       ``(C)(i) submit the report and model format to the 
     authorizing committees; and
       ``(ii) make the report and model format available to 
     covered institutions, lenders, and the public.
       ``(2) Use of form.--The Secretary shall take such steps as 
     necessary to make the model format available to covered 
     institutions and to encourage--
       ``(A) lenders subject to subsection (b) to use the model 
     format in providing the information required under subsection 
     (b); and
       ``(B) covered institutions to use such format in preparing 
     the information report under subsection (c).
       ``(b) Lender Duties.--Each lender that has an educational 
     loan arrangement with a covered institution shall annually, 
     by a date determined by the Secretary, provide to the covered 
     institution and to the Secretary the information included on 
     the model format for each type of educational loan provided 
     by the lender to students attending the covered institution, 
     or the parents of such students, for the preceding academic 
     year.
       ``(c) Covered Institution Duties.--Each covered institution 
     shall--
       ``(1) prepare and submit to the Secretary an annual report, 
     by a date determined by the Secretary, that includes, for 
     each lender that has an educational loan arrangement with the 
     covered institution and that has submitted to the institution 
     the information required under subsection (b)--
       ``(A) the information included on the model format for each 
     type of educational loan provided by the lender to students 
     attending the covered institution, or the parents of such 
     students; and
       ``(B) a detailed explanation of why the covered institution 
     believes the terms and conditions of each type of educational 
     loan provided pursuant to the agreement are beneficial for 
     students attending the covered institution, or the parents of 
     such students; and
       ``(2) ensure that the report required under paragraph (1) 
     is made available to the public and provided to students 
     attending or planning to attend the covered institution, and 
     the parents of such students, in time for the student or 
     parent to take such information into account before applying 
     for or selecting an educational loan.''.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

     SEC. 201. TEACHER QUALITY PARTNERSHIP GRANTS.

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

              ``PART A--TEACHER QUALITY PARTNERSHIP GRANTS

     ``SEC. 201. PURPOSES; DEFINITIONS.

       ``(a) Purposes.--The purposes of this part are to--
       ``(1) improve student achievement;
       ``(2) improve the quality of the current and future 
     teaching force by improving the preparation of prospective 
     teachers and enhancing professional development activities;
       ``(3) hold institutions of higher education accountable for 
     preparing highly qualified teachers; and
       ``(4) recruit qualified individuals, including minorities 
     and individuals from other occupations, into the teaching 
     force.
       ``(b) Definitions.--In this part:
       ``(1) Arts and sciences.--The term `arts and sciences' 
     means--
       ``(A) when referring to an organizational unit of an 
     institution of higher education, any academic unit that 
     offers 1 or more academic majors in disciplines or content 
     areas corresponding to the academic subject matter areas in 
     which teachers provide instruction; and
       ``(B) when referring to a specific academic subject area, 
     the disciplines or content areas in which academic majors are 
     offered by the arts and sciences organizational unit.
       ``(2) Children from low-income families.--The term 
     `children from low-income families' means children as 
     described in section 1124(c)(1)(A) of the Elementary and 
     Secondary Education Act of 1965.
       ``(3) Core academic subjects.--The term `core academic 
     subjects' has the meaning given the term in section 9101 of 
     the Elementary and Secondary Education Act of 1965.
       ``(4) Early childhood education program.--The term `early 
     childhood education program' means--
       ``(A) a Head Start program or an Early Head Start program 
     carried out under the Head Start Act (42 U.S.C. 9831 et 
     seq.);
       ``(B) a State licensed or regulated child care program or 
     school; or
       ``(C) a State prekindergarten program that serves children 
     from birth through kindergarten and that addresses the 
     children's cognitive (including language, early literacy, and 
     pre-numeracy), social, emotional, and physical development.
       ``(5) Early childhood educator.--The term `early childhood 
     educator' means an individual with primary responsibility for 
     the education of children in an early childhood education 
     program.
       ``(6) Educational service agency.--The term `educational 
     service agency' has the meaning given the term in section 
     9101 of the Elementary and Secondary Education Act of 1965.
       ``(7) Eligible partnership.--The term `eligible 
     partnership' means an entity that--
       ``(A) shall include--
       ``(i) a high-need local educational agency;
       ``(ii) a high-need school or a consortium of high-need 
     schools served by the high-need local educational agency or, 
     as applicable, a high-need early childhood education program;
       ``(iii) a partner institution;
       ``(iv) a school, department, or program of education within 
     such partner institution; and
       ``(v) a school or department of arts and sciences within 
     such partner institution; and
       ``(B) may include any of the following:
       ``(i) The Governor of the State.
       ``(ii) The State educational agency.
       ``(iii) The State board of education.
       ``(iv) The State agency for higher education.
       ``(v) A business.
       ``(vi) A public or private nonprofit educational 
     organization.
       ``(vii) An educational service agency.
       ``(viii) A teacher organization.
       ``(ix) A high-performing local educational agency, or a 
     consortium of such local educational agencies, that can serve 
     as a resource to the partnership.
       ``(x) A charter school (as defined in section 5210 of the 
     Elementary and Secondary Education Act of 1965).
       ``(xi) A school or department within the partner 
     institution that focuses on psychology and human development.
       ``(xii) A school or department within the partner 
     institution with comparable expertise in the disciplines of 
     teaching, learning, and child and adolescent development.
       ``(8) Essential components of reading instruction.--The 
     term `essential components of

[[Page 19913]]

     reading instruction' has the meaning given such term in 
     section 1208 of the Elementary and Secondary Education Act of 
     1965.
       ``(9) Exemplary teacher.--The term `exemplary teacher' has 
     the meaning given such term in section 9101 of the Elementary 
     and Secondary Education Act of 1965.
       ``(10) High-need early childhood education program.--The 
     term `high-need early childhood education program' means an 
     early childhood education program that is among the highest 
     25 percent of early childhood programs in the geographic area 
     served by the local educational agency in the partnership, in 
     terms of the percentage of students from families with 
     incomes below the poverty line.
       ``(11) High-need local educational agency.--The term `high-
     need local educational agency' means a local educational 
     agency--
       ``(A)(i) for which not less than 20 percent of the children 
     served by the agency are children from low-income families;
       ``(ii) that serves not fewer than 10,000 children from low-
     income families; or
       ``(iii) with a total of less than 600 students in average 
     daily attendance at the schools that are served by the agency 
     and all of whose schools are designated with a school locale 
     code of 6, 7, or 8, as determined by the Secretary; and
       ``(B)(i) for which there is a high percentage of teachers 
     not teaching in the academic subject areas or grade levels in 
     which the teachers were trained to teach; or
       ``(ii) for which there is a high teacher turnover rate or a 
     high percentage of teachers with emergency, provisional, or 
     temporary certification or licensure.
       ``(12) High-need school.--The term `high-need school' means 
     a public elementary school or public secondary school that--
       ``(A) is among the highest 25 percent of schools served by 
     the local educational agency that serves the school, in terms 
     of the percentage of students from families with incomes 
     below the poverty line; or
       ``(B) is designated with a school locale code of 6, 7, or 
     8, as determined by the Secretary.
       ``(13) Highly competent.--The term `highly competent', when 
     used with respect to an early childhood educator, means an 
     educator--
       ``(A) with specialized education and training in 
     development and education of young children from birth until 
     entry into kindergarten;
       ``(B) with--
       ``(i) a baccalaureate degree in an academic major in the 
     arts and sciences; or
       ``(ii) an associate's degree in a related educational area; 
     and
       ``(C) who has demonstrated a high level of knowledge and 
     use of content and pedagogy in the relevant areas associated 
     with quality early childhood education.
       ``(14) Highly qualified.--The term `highly qualified' has 
     the meaning given such term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 and, with respect to 
     special education teachers, in section 602 of the Individuals 
     with Disabilities Education Act.
       ``(15) Induction program.--The term `induction program' 
     means a formalized program for new teachers during not less 
     than the teachers' first 2 years of teaching that is designed 
     to provide support for, and improve the professional 
     performance and advance the retention in the teaching field 
     of, beginning teachers. Such program shall promote effective 
     teaching skills and shall include the following components:
       ``(A) High-quality teacher mentoring.
       ``(B) Periodic, structured time for collaboration with 
     teachers in the same department or field, as well as time for 
     information-sharing among teachers, principals, 
     administrators, and participating faculty in the partner 
     institution.
       ``(C) The application of empirically based practice and 
     scientifically valid research on instructional practices.
       ``(D) Opportunities for new teachers to draw directly upon 
     the expertise of teacher mentors, faculty, and researchers to 
     support the integration of empirically based practice and 
     scientifically valid research with practice.
       ``(E) The development of skills in instructional and 
     behavioral interventions derived from empirically based 
     practice and, where applicable, scientifically valid 
     research.
       ``(F) Faculty who--
       ``(i) model the integration of research and practice in the 
     classroom; and
       ``(ii) assist new teachers with the effective use and 
     integration of technology in the classroom.
       ``(G) Interdisciplinary collaboration among exemplary 
     teachers, faculty, researchers, and other staff who prepare 
     new teachers on the learning process and the assessment of 
     learning.
       ``(H) Assistance with the understanding of data, 
     particularly student achievement data, and the data's 
     applicability in classroom instruction.
       ``(I) Regular evaluation of the new teacher.
       ``(16) Limited english proficient.--The term `limited 
     English proficient' has the meaning given such term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965.
       ``(17) Partner institution.--The term `partner institution' 
     means an institution of higher education, which may include a 
     2-year institution of higher education offering a dual 
     program with a 4-year institution of higher education, 
     participating in an eligible partnership that has a teacher 
     preparation program--
       ``(A) whose graduates exhibit strong performance on State-
     determined qualifying assessments for new teachers through--
       ``(i) demonstrating that 80 percent or more of the 
     graduates of the program who intend to enter the field of 
     teaching have passed all of the applicable State 
     qualification assessments for new teachers, which shall 
     include an assessment of each prospective teacher's subject 
     matter knowledge in the content area in which the teacher 
     intends to teach; or
       ``(ii) being ranked among the highest-performing teacher 
     preparation programs in the State as determined by the 
     State--

       ``(I) using criteria consistent with the requirements for 
     the State report card under section 205(b); and
       ``(II) using the State report card on teacher preparation 
     required under section 205(b), after the first publication of 
     such report card and for every year thereafter; or

       ``(B) that requires--
       ``(i) each student in the program to meet high academic 
     standards and participate in intensive clinical experience;
       ``(ii) each student in the program preparing to become a 
     teacher to become highly qualified; and
       ``(iii) each student in the program preparing to become an 
     early childhood educator to meet degree requirements, as 
     established by the State, and become highly competent.
       ``(18) Principles of scientific research.--The term 
     `principles of scientific research' means research that--
       ``(A) applies rigorous, systematic, and objective 
     methodology to obtain reliable and valid knowledge relevant 
     to education activities and programs;
       ``(B) presents findings and makes claims that are 
     appropriate to and supported by the methods that have been 
     employed; and
       ``(C) includes, appropriate to the research being 
     conducted--
       ``(i) use of systematic, empirical methods that draw on 
     observation or experiment;
       ``(ii) use of data analyses that are adequate to support 
     the general findings;
       ``(iii) reliance on measurements or observational methods 
     that provide reliable and generalizable findings;
       ``(iv) claims of causal relationships only in research 
     designs that substantially eliminate plausible competing 
     explanations for the obtained results, which may include but 
     shall not be limited to random-assignment experiments;
       ``(v) presentation of studies and methods in sufficient 
     detail and clarity to allow for replication or, at a minimum, 
     to offer the opportunity to build systematically on the 
     findings of the research;
       ``(vi) acceptance by a peer-reviewed journal or critique by 
     a panel of independent experts through a comparably rigorous, 
     objective, and scientific review; and
       ``(vii) use of research designs and methods appropriate to 
     the research question posed.
       ``(19) Professional development.--The term `professional 
     development' has the meaning given the term in section 9101 
     of the Elementary and Secondary Education Act of 1965.
       ``(20) Scientifically valid research.--The term 
     `scientifically valid research' includes applied research, 
     basic research, and field-initiated research in which the 
     rationale, design, and interpretation are soundly developed 
     in accordance with accepted principles of scientific 
     research.
       ``(21) Teacher mentoring.--The term `teacher mentoring' 
     means the mentoring of new or prospective teachers through a 
     new or established program that--
       ``(A) includes clear criteria for the selection of teacher 
     mentors who will provide role model relationships for 
     mentees, which criteria shall be developed by the eligible 
     partnership and based on measures of teacher effectiveness;
       ``(B) provides high-quality training for such mentors, 
     including instructional strategies for literacy instruction;
       ``(C) provides regular and ongoing opportunities for 
     mentors and mentees to observe each other's teaching methods 
     in classroom settings during the day in a high-need school in 
     the high-need local educational agency in the eligible 
     partnership;
       ``(D) provides mentoring to each mentee by a colleague who 
     teaches in the same field, grade, or subject as the mentee;
       ``(E) promotes empirically based practice of, and 
     scientifically valid research on, where applicable--
       ``(i) teaching and learning;
       ``(ii) assessment of student learning;
       ``(iii) the development of teaching skills through the use 
     of instructional and behavioral interventions; and
       ``(iv) the improvement of the mentees' capacity to 
     measurably advance student learning; and
       ``(F) includes--
       ``(i) common planning time or regularly scheduled 
     collaboration for the mentor and mentee; and
       ``(ii) joint professional development opportunities.
       ``(22) Teaching skills.--The term `teaching skills' means 
     skills that enable a teacher to--
       ``(A) increase student learning, achievement, and the 
     ability to apply knowledge;
       ``(B) effectively convey and explain academic subject 
     matter;
       ``(C) employ strategies grounded in the disciplines of 
     teaching and learning that--
       ``(i) are based on empirically based practice and 
     scientifically valid research, where applicable, on teaching 
     and learning;
       ``(ii) are specific to academic subject matter; and
       ``(iii) focus on the identification of students' specific 
     learning needs, particularly students with disabilities, 
     students who are limited English proficient, students who are 
     gifted and talented, and students with low literacy levels, 
     and the tailoring of academic instruction to such needs;

[[Page 19914]]

       ``(D) conduct an ongoing assessment of student learning;
       ``(E) effectively manage a classroom;
       ``(F) communicate and work with parents and guardians, and 
     involve parents and guardians in their children's education; 
     and
       ``(G) use age-appropriate strategies and practices for 
     children, including in early childhood education programs.
       ``(23) Teaching residency program.--The term `teaching 
     residency program' means a school-based teacher preparation 
     program in which a prospective teacher--
       ``(A) for 1 academic year, teaches alongside a mentor 
     teacher, who is the teacher of record;
       ``(B) receives concurrent instruction during the year 
     described in subparagraph (A) from the partner institution, 
     which courses may be taught by local educational agency 
     personnel or residency program faculty, in the teaching of 
     the content area in which the teacher will become certified 
     or licensed;
       ``(C) acquires effective teaching skills; and
       ``(D) prior to completion of the program, earns a master's 
     degree, attains full State teacher certification or 
     licensure, and becomes highly qualified.

     ``SEC. 202. PARTNERSHIP GRANTS.

       ``(a) Program Authorized.--From amounts made available 
     under section 208, the Secretary is authorized to award 
     grants, on a competitive basis, to eligible partnerships, to 
     enable the eligible partnerships to carry out the activities 
     described in subsection (c).
       ``(b) Application.--Each eligible partnership desiring a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require. Each such 
     application shall contain--
       ``(1) a needs assessment of all the partners in the 
     eligible partnership with respect to the preparation, ongoing 
     training, professional development, and retention, of general 
     and special education teachers, principals, and, as 
     applicable, early childhood educators;
       ``(2) a description of the extent to which the program 
     prepares prospective and new teachers with strong teaching 
     skills;
       ``(3) a description of the extent to which the program will 
     prepare prospective and new teachers to understand research 
     and data and the applicability of research and data in the 
     classroom;
       ``(4) a description of how the partnership will coordinate 
     strategies and activities assisted under the grant with other 
     teacher preparation or professional development programs, 
     including those funded under the Elementary and Secondary 
     Education Act of 1965 and the Individuals with Disabilities 
     Education Act, and through the National Science Foundation, 
     and how the activities of the partnership will be consistent 
     with State, local, and other education reform activities that 
     promote student achievement;
       ``(5) a resource assessment that describes the resources 
     available to the partnership, including--
       ``(A) the integration of funds from other related sources;
       ``(B) the intended use of the grant funds;
       ``(C) the commitment of the resources of the partnership to 
     the activities assisted under this section, including 
     financial support, faculty participation, and time 
     commitments, and to the continuation of the activities when 
     the grant ends;
       ``(6) a description of--
       ``(A) how the partnership will meet the purposes of this 
     part;
       ``(B) how the partnership will carry out the activities 
     required under subsection (d) or (e) based on the needs 
     identified in paragraph (1), with the goal of improving 
     student achievement;
       ``(C) the partnership's evaluation plan under section 
     204(a);
       ``(D) how the partnership will align the teacher 
     preparation program with the--
       ``(i) early learning standards for early childhood 
     education programs, as applicable, of the State in which the 
     partnership is located; and
       ``(ii) the student academic achievement standards and 
     academic content standards under section 1111(b)(2) of the 
     Elementary and Secondary Education Act of 1965, established 
     by the State in which the partnership is located;
       ``(E) how faculty at the partner institution will work 
     with, during the term of the grant, highly qualified teachers 
     in the classrooms of schools served by the high-need local 
     educational agency in the partnership to provide high-quality 
     professional development activities;
       ``(F) how the partnership will design, implement, or 
     enhance a year-long, rigorous, and enriching teaching 
     preservice clinical program component;
       ``(G) the in-service professional development strategies 
     and activities to be supported; and
       ``(H) how the partnership will collect, analyze, and use 
     data on the retention of all teachers and early childhood 
     educators in schools and early childhood programs located in 
     the geographic area served by the partnership to evaluate the 
     effectiveness of the partnership's teacher and educator 
     support system; and
       ``(7) with respect to the induction program required as 
     part of the activities carried out under this section--
       ``(A) a demonstration that the schools and departments 
     within the institution of higher education that are part of 
     the induction program have relevant and essential roles in 
     the effective preparation of teachers, including content 
     expertise and expertise in teaching;
       ``(B) a demonstration of the partnership's capability and 
     commitment to the use of empirically based practice and 
     scientifically valid research on teaching and learning, and 
     the accessibility to and involvement of faculty;
       ``(C) a description of how the teacher preparation program 
     will design and implement an induction program to support all 
     new teachers through not less than the first 2 years of 
     teaching in the further development of the new teachers' 
     teaching skills, including the use of mentors who are trained 
     and compensated by such program for the mentors' work with 
     new teachers; and
       ``(D) a description of how faculty involved in the 
     induction program will be able to substantially participate 
     in an early childhood education program or an elementary or 
     secondary school classroom setting, as applicable, including 
     release time and receiving workload credit for such 
     participation.
       ``(c) Required Use of Grant Funds.--An eligible partnership 
     that receives a grant under this part shall use grant funds 
     to carry out a program for the pre-baccalaureate preparation 
     of teachers under subsection (d), a teaching residency 
     program under subsection (e), or both such programs.
       ``(d) Partnership Grants for Pre-Baccalaureate Preparation 
     of Teachers.--An eligible partnership that receives a grant 
     to carry out an effective program for the pre-baccalaureate 
     preparation of teachers shall carry out a program that 
     includes all of the following:
       ``(1) Reforms.--
       ``(A) In general.--Implementing reforms, described in 
     subparagraph (B), within each teacher preparation program 
     and, as applicable, each preparation program for early 
     childhood education programs, of the eligible partnership 
     that is assisted under this section, to hold each program 
     accountable for--
       ``(i) preparing--

       ``(I) current or prospective teachers to be highly 
     qualified (including teachers in rural school districts who 
     may teach multiple subjects, special educators, and teachers 
     of students who are limited English proficient who may teach 
     multiple subjects);
       ``(II) such teachers and, as applicable, early childhood 
     educators, to understand empirically based practice and 
     scientifically valid research on teaching and learning and 
     its applicability, and to use technology effectively, 
     including the use of instructional techniques to improve 
     student achievement; and
       ``(III) as applicable, early childhood educators to be 
     highly competent; and

       ``(ii) promoting strong teaching skills and, as applicable, 
     techniques for early childhood educators to improve 
     children's cognitive, social, emotional, and physical 
     development.
       ``(B) Required reforms.--The reforms described in 
     subparagraph (A) shall include--
       ``(i) implementing teacher preparation program curriculum 
     changes that improve, evaluate, and assess how well all 
     prospective and new teachers develop teaching skills;
       ``(ii) using empirically based practice and scientifically 
     valid research, where applicable, about the disciplines of 
     teaching and learning so that all prospective teachers and, 
     as applicable, early childhood educators--

       ``(I) can understand and implement research-based teaching 
     practices in classroom-based instruction;
       ``(II) have knowledge of student learning methods;
       ``(III) possess skills to analyze student academic 
     achievement data and other measures of student learning and 
     use such data and measures to improve instruction in the 
     classroom;
       ``(IV) possess teaching skills and an understanding of 
     effective instructional strategies across all applicable 
     content areas that enable the teachers and early childhood 
     educators to--

       ``(aa) meet the specific learning needs of all students, 
     including students with disabilities, students who are 
     limited English proficient, students who are gifted and 
     talented, students with low literacy levels and, as 
     applicable, children in early childhood education programs; 
     and
       ``(bb) differentiate instruction for such students; and

       ``(V) can successfully employ effective strategies for 
     reading instruction using the essential components of reading 
     instruction;

       ``(iii) ensuring collaboration with departments, programs, 
     or units of a partner institution outside of the teacher 
     preparation program in all academic content areas to ensure 
     that new teachers receive training in both teaching and 
     relevant content areas in order to become highly qualified;
       ``(iv) developing and implementing an induction program; 
     and
       ``(v) developing admissions goals and priorities with the 
     hiring objectives of the high-need local educational agency 
     in the eligible partnership.
       ``(2) Clinical experience and interaction.--Developing and 
     improving a sustained and high-quality pre-service clinical 
     education program to further develop the teaching skills of 
     all prospective teachers and, as applicable, early childhood 
     educators, involved in the program. Such program shall do the 
     following:
       ``(A) Incorporate year-long opportunities for enrichment 
     activity or a combination of activities, including--
       ``(i) clinical learning in classrooms in high-need schools 
     served by the high-need local educational agency in the 
     eligible partnership and identified by the eligible 
     partnership; and
       ``(ii) closely supervised interaction between faculty and 
     new and experienced teachers, principals, and other 
     administrators at early childhood education programs (as 
     applicable), elementary schools, or secondary schools, and 
     providing support for such interaction.

[[Page 19915]]

       ``(B) Integrate pedagogy and classroom practice and promote 
     effective teaching skills in academic content areas.
       ``(C) Provide high-quality teacher mentoring.
       ``(D)(i) Be offered over the course of a program of teacher 
     preparation;
       ``(ii) be tightly aligned with course work (and may be 
     developed as a 5th year of a teacher preparation program); 
     and
       ``(iii) where feasible, allow prospective teachers to learn 
     to teach in the same school district in which the teachers 
     will work, learning the instructional initiatives and 
     curriculum of that district.
       ``(E) Provide support and training for those individuals 
     participating in an activity for prospective teachers 
     described in this paragraph or paragraph (1) or (2), and for 
     those who serve as mentors for such teachers, based on each 
     individual's experience. Such support may include--
       ``(i) with respect to a prospective teacher or a mentor, 
     release time for such individual's participation;
       ``(ii) with respect to a faculty member, receiving course 
     workload credit and compensation for time teaching in the 
     eligible partnership's activities; and
       ``(iii) with respect to a mentor, a stipend, which may 
     include bonus, differential, incentive, or merit or 
     performance-based pay.
       ``(3) Induction programs for new teachers.--Creating an 
     induction program for new teachers, or, in the case of an 
     early childhood education program, providing mentoring or 
     coaching for new early childhood educators.
       ``(4) Support and training for participants in early 
     childhood education programs.--In the case of an eligible 
     partnership focusing on early childhood educator preparation, 
     implementing initiatives that increase compensation for early 
     childhood educators who attain associate or baccalaureate 
     degrees in early childhood education.
       ``(5) Teacher recruitment.--Developing and implementing 
     effective mechanisms to ensure that the eligible partnership 
     is able to recruit qualified individuals to become highly 
     qualified teachers through the activities of the eligible 
     partnership.
       ``(e) Partnership Grants for the Establishment of Teaching 
     Residency Programs.--
       ``(1) In general.--An eligible partnership receiving a 
     grant to carry out an effective teaching residency program 
     shall carry out a program that includes all of the following 
     activities:
       ``(A) Supporting a teaching residency program described in 
     paragraph (2) for high-need subjects and areas, as determined 
     by the needs of the high-need local educational agency in the 
     partnership.
       ``(B) Modifying staffing procedures to provide greater 
     flexibility for local educational agency and school leaders 
     to establish effective school-level staffing in order to 
     facilitate placement of graduates of the teaching residency 
     program in cohorts that facilitate professional 
     collaboration, both among graduates of the teaching residency 
     program and between such graduates and mentor teachers in the 
     receiving school.
       ``(C) Ensuring that teaching residents that participated in 
     the teaching residency program receive--
       ``(i) effective preservice preparation as described in 
     paragraph (2);
       ``(ii) teacher mentoring;
       ``(iii) induction through the induction program as the 
     teaching residents enter the classroom as new teachers; and
       ``(iv) the preparation described in subparagraphs (A), (B), 
     and (C) of subsection (d)(2).
       ``(2) Teaching residency programs.--
       ``(A) Establishment and design.--A teaching residency 
     program under this paragraph shall be a program based upon 
     models of successful teaching residencies that serves as a 
     mechanism to prepare teachers for success in the high-need 
     schools in the eligible partnership, and shall be designed to 
     include the following characteristics of successful programs:
       ``(i) The integration of pedagogy, classroom practice, and 
     teacher mentoring.
       ``(ii) Engagement of teaching residents in rigorous 
     graduate-level coursework to earn a master's degree while 
     undertaking a guided teaching apprenticeship.
       ``(iii) Experience and learning opportunities alongside a 
     trained and experienced mentor teacher--

       ``(I) whose teaching shall complement the residency program 
     so that classroom clinical practice is tightly aligned with 
     coursework;
       ``(II) who shall have extra responsibilities as a teacher 
     leader of the teaching residency program, as a mentor for 
     residents, and as a teacher coach during the induction 
     program for novice teachers, and for establishing, within the 
     program, a learning community in which all individuals are 
     expected to continually improve their capacity to advance 
     student learning; and
       ``(III) who may have full relief from teaching duties as a 
     result of such additional responsibilities.

       ``(iv) The establishment of clear criteria for the 
     selection of mentor teachers based on measures of teacher 
     effectiveness and the appropriate subject area knowledge. 
     Evaluation of teacher effectiveness shall be based on 
     observations of such domains of teaching as the following:

       ``(I) Planning and preparation, including demonstrated 
     knowledge of content, pedagogy, and assessment, including the 
     use of formative assessments to improve student learning.
       ``(II) Appropriate instruction that engages students with 
     different learning styles.
       ``(III) Collaboration with colleagues to improve 
     instruction.
       ``(IV) Analysis of gains in student learning, based on 
     multiple measures, that, when feasible, may include valid and 
     reliable objective measures of the influence of teachers on 
     the rate of student academic progress.
       ``(V) In the case of mentor candidates who will be 
     mentoring current or future literacy and mathematics coaches 
     or instructors, appropriate skills in the essential 
     components of reading instruction, teacher training in 
     literacy instructional strategies across core subject areas, 
     and teacher training in mathematics instructional strategies, 
     as appropriate.

       ``(v) Grouping of teaching residents in cohorts to 
     facilitate professional collaboration among such residents.
       ``(vi) The development of admissions goals and priorities 
     aligned with the hiring objectives of the local educational 
     agency partnering with the program, as well as the 
     instructional initiatives and curriculum of the agency, in 
     exchange for a commitment by the agency to hire graduates 
     from the teaching residency program.
       ``(vii) Support for residents, once the teaching residents 
     are hired as teachers of record, through an induction 
     program, professional development, and networking 
     opportunities to support the residents through not less than 
     the residents' first 2 years of teaching.
       ``(B) Selection of individuals as teacher residents.--
       ``(i) Eligible individual.--In order to be eligible to be a 
     teacher resident in a teaching residency program under this 
     paragraph, an individual shall--

       ``(I) be a recent graduate of a 4-year institution of 
     higher education or a mid-career professional from outside 
     the field of education possessing strong content knowledge or 
     a record of professional accomplishment; and
       ``(II) submit an application to the teaching residency 
     program.

       ``(ii) Selection criteria.--An eligible partnership 
     carrying out a teaching residency program under this 
     subparagraph shall establish criteria for the selection of 
     eligible individuals to participate in the teaching residency 
     program based on the following characteristics:

       ``(I) Strong content knowledge or record of accomplishment 
     in the field or subject area to be taught.
       ``(II) Strong verbal and written communication skills, 
     which may be demonstrated by performance on appropriate 
     tests.
       ``(III) Other attributes linked to effective teaching, 
     which may be determined by interviews or performance 
     assessments, as specified by the eligible partnership.

       ``(C) Stipend and service requirement.--
       ``(i) Stipend.--A teaching residency program under this 
     paragraph shall provide a 1-year living stipend or salary to 
     teaching residents during the 1-year teaching residency 
     program.
       ``(ii) Service requirement.--As a condition of receiving a 
     stipend under this subparagraph, a teaching resident shall 
     agree to teach in a high-need school served by the high-need 
     local educational agency in the eligible partnership for a 
     period of 3 or more years after completing the 1-year 
     teaching residency program.
       ``(iii) Repayment.--If a teaching resident who received a 
     stipend under this subparagraph does not complete the service 
     requirement described in clause (ii), such individual shall 
     repay to the high-need local educational agency a pro rata 
     portion of the stipend amount for the amount of teaching time 
     that the individual did not complete.
       ``(f) Consultation.--
       ``(1) In general.--Members of an eligible partnership that 
     receives a grant under this section shall engage in regular 
     consultation throughout the development and implementation of 
     programs and activities under this section.
       ``(2) Regular communication.--To ensure timely and 
     meaningful consultation, regular communication shall occur 
     among all members of the eligible partnership, including the 
     high-need local educational agency. Such communication shall 
     continue throughout the implementation of the grant and the 
     assessment of programs and activities under this section.
       ``(3) Written consent.--The Secretary may approve changes 
     in grant activities of a grant under this section only if a 
     written consent signed by all members of the eligible 
     partnership is submitted to the Secretary.
       ``(g) Construction.--Nothing in this section shall be 
     construed to prohibit an eligible partnership from using 
     grant funds to coordinate with the activities of eligible 
     partnerships in other States or on a regional basis through 
     Governors, State boards of education, State educational 
     agencies, State agencies responsible for early childhood 
     education, local educational agencies, or State agencies for 
     higher education.
       ``(h) Supplement, Not Supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, and local funds that would otherwise be 
     expended to carry out activities under this section.

     ``SEC. 203. ADMINISTRATIVE PROVISIONS.

       ``(a) Duration; Number of Awards; Payments.--
       ``(1) Duration.--A grant awarded under this part shall be 
     awarded for a period of 5 years.
       ``(2) Number of awards.--An eligible partnership may not 
     receive more than 1 grant during a 5-year period. Nothing in 
     this title shall be construed to prohibit an individual 
     member, that can demonstrate need, of an eligible partnership 
     that receives a grant under this title from entering into 
     another eligible partnership consisting of new members and 
     receiving a grant

[[Page 19916]]

     with such other eligible partnership before the 5-year period 
     described in the preceding sentence applicable to the 
     eligible partnership with which the individual member has 
     first partnered has expired.
       ``(3) Payments.--The Secretary shall make annual payments 
     of grant funds awarded under this part.
       ``(b) Peer Review.--
       ``(1) Panel.--The Secretary shall provide the applications 
     submitted under this part to a peer review panel for 
     evaluation. With respect to each application, the peer review 
     panel shall initially recommend the application for funding 
     or for disapproval.
       ``(2) Priority.--In recommending applications to the 
     Secretary for funding under this part, the panel shall give 
     priority--
       ``(A) to applications from broad-based eligible 
     partnerships that involve businesses and community 
     organizations; and
       ``(B) to eligible partnerships so that the awards promote 
     an equitable geographic distribution of grants among rural 
     and urban areas.
       ``(3) Secretarial selection.--The Secretary shall 
     determine, based on the peer review process, which 
     applications shall receive funding and the amounts of the 
     grants. In determining the grant amount, the Secretary shall 
     take into account the total amount of funds available for all 
     grants under this part and the types of activities proposed 
     to be carried out by the eligible partnership.
       ``(c) Matching Requirements.--
       ``(1) In general.--Each eligible partnership receiving a 
     grant under this part shall provide, from non-Federal 
     sources, an amount equal to 100 percent of the amount of the 
     grant, which may be provided in cash or in-kind, to carry out 
     the activities supported by the grant.
       ``(2) Waiver.--The Secretary may waive all or part of the 
     matching requirement described in paragraph (1) for any 
     fiscal year for an eligible partnership, if the Secretary 
     determines that applying the matching requirement to the 
     eligible partnership would result in serious hardship or an 
     inability to carry out the authorized activities described in 
     this part.
       ``(d) Limitation on Administrative Expenses.--An eligible 
     partnership that receives a grant under this part may use not 
     more than 2 percent of the grant funds for purposes of 
     administering the grant.

     ``SEC. 204. ACCOUNTABILITY AND EVALUATION.

       ``(a) Eligible Partnership Evaluation.--Each eligible 
     partnership submitting an application for a grant under this 
     part shall establish and include in such application, an 
     evaluation plan that includes strong performance objectives. 
     The plan shall include objectives and measures for 
     increasing--
       ``(1) student achievement for all students as measured by 
     the eligible partnership;
       ``(2) teacher retention in the first 3 years of a teacher's 
     career;
       ``(3) improvement in the pass rates and scaled scores for 
     initial State certification or licensure of teachers; and
       ``(4)(A) the percentage of highly qualified teachers hired 
     by the high-need local educational agency participating in 
     the eligible partnership;
       ``(B) the percentage of such teachers who are members of 
     under represented groups;
       ``(C) the percentage of such teachers who teach high-need 
     academic subject areas (such as reading, mathematics, 
     science, and foreign language, including less commonly taught 
     languages and critical foreign languages);
       ``(D) the percentage of such teachers who teach in high-
     need areas (including special education, language instruction 
     educational programs for limited English proficient students, 
     and early childhood education);
       ``(E) the percentage of such teachers in high-need schools, 
     disaggregated by the elementary, middle, and high school 
     levels; and
       ``(F) as applicable, the percentage of early childhood 
     education program classes in the geographic area served by 
     the eligible partnership taught by early childhood educators 
     who are highly competent.
       ``(b) Information.--An eligible partnership receiving a 
     grant under this part shall ensure that teachers, principals, 
     school superintendents, and faculty and leadership at 
     institutions of higher education located in the geographic 
     areas served by the eligible partnership under this part are 
     provided information about the activities carried out with 
     funds under this part, including through electronic means.
       ``(c) Revocation of Grant.--If the Secretary determines 
     that an eligible partnership receiving a grant under this 
     part is not making substantial progress in meeting the 
     purposes, goals, objectives, and measures, as appropriate, of 
     the grant by the end of the third year of a grant under this 
     part, then the Secretary shall require such eligible 
     partnership to submit a revised application that identifies 
     the steps the partnership will take to make substantial 
     progress to meet the purposes, goals, objectives, and 
     measures, as appropriate, of this part.
       ``(d) Evaluation and Dissemination.--The Secretary shall 
     evaluate the activities funded under this part and report the 
     Secretary's findings regarding the activities to the 
     authorizing committees. The Secretary shall broadly 
     disseminate--
       ``(1) successful practices developed by eligible 
     partnerships under this part; and
       ``(2) information regarding such practices that were found 
     to be ineffective.

     ``SEC. 205. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE 
                   TEACHERS.

       ``(a) Institutional and Program Report Cards on the Quality 
     of Teacher Preparation.--
       ``(1) Report card.--Each institution of higher education 
     that conducts a traditional teacher preparation program or 
     alternative routes to State certification or licensure 
     program and that enrolls students receiving Federal 
     assistance under this Act shall report annually to the State 
     and the general public, in a uniform and comprehensible 
     manner that conforms with the definitions and methods 
     established by the Secretary, both for traditional teacher 
     preparation programs and alternative routes to State 
     certification or licensure programs, the following 
     information:
       ``(A) Pass rates and scaled scores.--For the most recent 
     year for which the information is available for those 
     students who took the assessments and are enrolled in the 
     traditional teacher preparation program or alternative routes 
     to State certification or licensure program, and for those 
     who have taken the assessments and have completed the 
     traditional teacher preparation program or alternative routes 
     to State certification or licensure program during the 2-year 
     period preceding such year, for each of the assessments used 
     for teacher certification or licensure by the State in which 
     the program is located--
       ``(i) the percentage of students who have completed 100 
     percent of the nonclinical coursework and taken the 
     assessment who pass such assessment;
       ``(ii) the percentage of all such students who passed each 
     such assessment;
       ``(iii) the percentage of students taking an assessment who 
     completed the teacher preparation program after enrolling in 
     the program, which shall be made available widely and 
     publicly by the State;
       ``(iv) the average scaled score for all students who took 
     each such assessment;
       ``(v) a comparison of the program's pass rates with the 
     average pass rates for programs in the State; and
       ``(vi) a comparison of the program's average scaled scores 
     with the average scaled scores for programs in the State.
       ``(B) Program information.--The criteria for admission into 
     the program, the number of students in the program 
     (disaggregated by race and gender), the average number of 
     hours of supervised clinical experience required for those in 
     the program, the number of full-time equivalent faculty and 
     students in the supervised clinical experience, and the total 
     number of students who have been certified or licensed as 
     teachers, disaggregated by subject and area of certification 
     or licensure.
       ``(C) Statement.--In States that require approval or 
     accreditation of teacher preparation programs, a statement of 
     whether the institution's program is so approved or 
     accredited, and by whom.
       ``(D) Designation as low-performing.--Whether the program 
     has been designated as low-performing by the State under 
     section 207(a).
       ``(E) Use of technology.--A description of the activities 
     that prepare teachers to effectively integrate technology 
     into curricula and instruction and effectively use technology 
     to collect, manage, and analyze data in order to improve 
     teaching, learning, and decisionmaking for the purpose of 
     increasing student academic achievement.
       ``(2) Report.--Each eligible partnership receiving a grant 
     under section 202 shall report annually on the progress of 
     the eligible partnership toward meeting the purposes of this 
     part and the objectives and measures described in section 
     204(a).
       ``(3) Fines.--The Secretary may impose a fine not to exceed 
     $25,000 on an institution of higher education for failure to 
     provide the information described in this subsection in a 
     timely or accurate manner.
       ``(4) Special rule.--In the case of an institution of 
     higher education that conducts a traditional teacher 
     preparation program or alternative routes to State 
     certification or licensure program and has fewer than 10 
     scores reported on any single initial teacher certification 
     or licensure assessment during an academic year, the 
     institution shall collect and publish information, as 
     required under paragraph (1)(A), with respect to an average 
     pass rate and scaled score on each State certification or 
     licensure assessment taken over a 3-year period.
       ``(b) State Report Card on the Quality of Teacher 
     Preparation.--
       ``(1) In general.--Each State that receives funds under 
     this Act shall provide to the Secretary, annually, in a 
     uniform and comprehensible manner that conforms with the 
     definitions and methods established by the Secretary, a State 
     report card on the quality of teacher preparation in the 
     State, both for traditional teacher preparation programs and 
     for alternative routes to State certification or licensure 
     programs, which shall include not less than the following:
       ``(A) A description of reliability and validity of the 
     teacher certification and licensure assessments, and any 
     other certification and licensure requirements, used by the 
     State.
       ``(B) The standards and criteria that prospective teachers 
     must meet in order to attain initial teacher certification or 
     licensure and to be certified or licensed to teach particular 
     academic subject areas or in particular grades within the 
     State.
       ``(C) A description of how the assessments and requirements 
     described in subparagraph (A) are aligned with the State's 
     challenging academic content standards required under section 
     1111(b)(1) of the Elementary and Secondary

[[Page 19917]]

     Education Act of 1965 and State early learning standards for 
     early childhood education programs.
       ``(D) For each of the assessments used by the State for 
     teacher certification or licensure--
       ``(i) for each institution of higher education located in 
     the State and each entity located in the State that offers an 
     alternative route for teacher certification or licensure, the 
     percentage of students at such institution or entity who have 
     completed 100 percent of the nonclinical coursework and taken 
     the assessment who pass such assessment;
       ``(ii) the percentage of all such students at all such 
     institutions taking the assessment who pass such assessment; 
     and
       ``(iii) the percentage of students taking an assessment who 
     completed the teacher preparation program after enrolling in 
     the program, which shall be made available widely and 
     publicly by the State.
       ``(E) A description of alternative routes to State 
     certification or licensure in the State (including any such 
     routes operated by entities that are not institutions of 
     higher education), if any, including, for each of the 
     assessments used by the State for teacher certification or 
     licensure--
       ``(i) the percentage of individuals participating in such 
     routes, or who have completed such routes during the 2-year 
     period preceding the date of the determination, who passed 
     each such assessment; and
       ``(ii) the average scaled score of individuals 
     participating in such routes, or who have completed such 
     routes during the period preceding the date of the 
     determination, who took each such assessment.
       ``(F) A description of the State's criteria for assessing 
     the performance of teacher preparation programs within 
     institutions of higher education in the State. Such criteria 
     shall include indicators of the academic content knowledge 
     and teaching skills of students enrolled in such programs.
       ``(G) For each teacher preparation program in the State, 
     the criteria for admission into the program, the number of 
     students in the program, disaggregated by race and gender 
     (except that such disaggregation shall not be required in a 
     case in which the number of students in a category is 
     insufficient to yield statistically reliable information or 
     the results would reveal personally identifiable information 
     about an individual student), the average number of hours of 
     supervised clinical experience required for those in the 
     program, and the number of full-time equivalent faculty, 
     adjunct faculty, and students in supervised clinical 
     experience.
       ``(H) For the State as a whole, and for each teacher 
     preparation program in the State, the number of teachers 
     prepared, in the aggregate and reported separately by--
       ``(i) area of certification or licensure;
       ``(ii) academic major; and
       ``(iii) subject area for which the teacher has been 
     prepared to teach.
       ``(I) Using the data generated under subparagraphs (G) and 
     (H), a description of the extent to which teacher preparation 
     programs are helping to address shortages of highly qualified 
     teachers, by area of certification or licensure, subject, and 
     specialty, in the State's public schools.
       ``(J) A description of the activities that prepare teachers 
     to effectively integrate technology into curricula and 
     instruction and effectively use technology to collect, 
     manage, and analyze data in order to improve teaching, 
     learning, and decisionmaking for the purpose of increasing 
     student academic achievement.
       ``(2) Prohibition against creating a national list.--The 
     Secretary shall not create a national list or ranking of 
     States, institutions, or schools using the scaled scores 
     provided under this subsection.
       ``(c) Report of the Secretary on the Quality of Teacher 
     Preparation.--
       ``(1) Report card.--The Secretary shall provide to 
     Congress, and publish and make widely available, a report 
     card on teacher qualifications and preparation in the United 
     States, including all the information reported in 
     subparagraphs (A) through (J) of subsection (b)(1). Such 
     report shall identify States for which eligible partnerships 
     received a grant under this part. Such report shall be so 
     provided, published, and made available annually.
       ``(2) Report to congress.--The Secretary shall prepare and 
     submit a report to Congress that contains the following:
       ``(A) A comparison of States' efforts to improve the 
     quality of the current and future teaching force.
       ``(B) A comparison of eligible partnerships' efforts to 
     improve the quality of the current and future teaching force.
       ``(C) The national mean and median scaled scores and pass 
     rate on any standardized test that is used in more than 1 
     State for teacher certification or licensure.
       ``(3) Special rule.--In the case of a teacher preparation 
     program with fewer than 10 scores reported on any single 
     initial teacher certification or licensure assessment during 
     an academic year, the Secretary shall collect and publish 
     information, and make publicly available, with respect to an 
     average pass rate and scaled score on each State 
     certification or licensure assessment taken over a 3-year 
     period.
       ``(d) Coordination.--The Secretary, to the extent 
     practicable, shall coordinate the information collected and 
     published under this part among States for individuals who 
     took State teacher certification or licensure assessments in 
     a State other than the State in which the individual received 
     the individual's most recent degree.

     ``SEC. 206. STATE FUNCTIONS.

       ``(a) State Assessment.--In order to receive funds under 
     this Act, a State shall have in place a procedure to identify 
     and assist, through the provision of technical assistance, 
     low-performing programs of teacher preparation. Such State 
     shall provide the Secretary an annual list of such low-
     performing teacher preparation programs that includes an 
     identification of those programs at risk of being placed on 
     such list. Such levels of performance shall be determined 
     solely by the State and may include criteria based on 
     information collected pursuant to this part. Such assessment 
     shall be described in the report under section 205(b).
       ``(b) Termination of Eligibility.--Any program of teacher 
     preparation from which the State has withdrawn the State's 
     approval, or terminated the State's financial support, due to 
     the low performance of the program based upon the State 
     assessment described in subsection (a)--
       ``(1) shall be ineligible for any funding for professional 
     development activities awarded by the Department;
       ``(2) shall not be permitted to accept or enroll any 
     student that receives aid under title IV in the institution's 
     teacher preparation program; and
       ``(3) shall provide transitional support, including 
     remedial services if necessary, for students enrolled at the 
     institution at the time of termination of financial support 
     or withdrawal of approval.
       ``(c) Negotiated Rulemaking.--If the Secretary develops any 
     regulations implementing subsection (b)(2), the Secretary 
     shall submit such proposed regulations to a negotiated 
     rulemaking process, which shall include representatives of 
     States, institutions of higher education, and educational and 
     student organizations.
       ``(d) Application of the Requirements.--The requirements of 
     this section shall apply to both traditional teacher 
     preparation programs and alternative routes to State 
     certification and licensure programs.

     ``SEC. 207. GENERAL PROVISIONS.

       ``(a) Methods.--In complying with sections 205 and 206, the 
     Secretary shall ensure that States and institutions of higher 
     education use fair and equitable methods in reporting and 
     that the reporting methods do not allow identification of 
     individuals.
       ``(b) Special Rule.--For each State that does not use 
     content assessments as a means of ensuring that all teachers 
     teaching in core academic subjects within the State are 
     highly qualified, as required under section 1119 of the 
     Elementary and Secondary Education Act of 1965 and in 
     accordance with the State plan submitted or revised under 
     section 1111 of such Act, and that each person employed as a 
     special education teacher in the State who teaches elementary 
     school, middle school, or secondary school is highly 
     qualified by the deadline, as required under section 
     612(a)(14)(C) of the Individuals with Disabilities Education 
     Act,--
       ``(1) the Secretary shall, to the extent practicable, 
     collect data comparable to the data required under this part 
     from States, local educational agencies, institutions of 
     higher education, or other entities that administer such 
     assessments to teachers or prospective teachers; and
       ``(2) notwithstanding any other provision of this part, the 
     Secretary shall use such data to carry out requirements of 
     this part related to assessments, pass rates, and scaled 
     scores.
       ``(c) Release of Information to Teacher Preparation 
     Programs.--
       ``(1) In general.--For the purpose of improving teacher 
     preparation programs, a State educational agency that 
     receives funds under this Act, or that participates as a 
     member of a partnership, consortium, or other entity that 
     receives such funds, shall provide to a teacher preparation 
     program, upon the request of the teacher preparation program, 
     any and all pertinent education-related information that--
       ``(A) may enable the teacher preparation program to 
     evaluate the effectiveness of the program's graduates or the 
     program itself; and
       ``(B) is possessed, controlled, or accessible by the State 
     educational agency.
       ``(2) Content of information.--The information described in 
     paragraph (1)--
       ``(A) shall include an identification of specific 
     individuals who graduated from the teacher preparation 
     program to enable the teacher preparation program to evaluate 
     the information provided to the program from the State 
     educational agency with the program's own data about the 
     specific courses taken by, and field experiences of, the 
     individual graduates; and
       ``(B) may include--
       ``(i) kindergarten through grade 12 academic achievement 
     and demographic data, without revealing personally 
     identifiable information about an individual student, for 
     students who have been taught by graduates of the teacher 
     preparation program; and
       ``(ii) teacher effectiveness evaluations for teachers who 
     graduated from the teacher preparation program.

     ``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for fiscal year 2008 and 
     each of the 5 succeeding fiscal years.''.

     SEC. 202. GENERAL PROVISIONS.

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

                      ``PART C--GENERAL PROVISIONS

     ``SEC. 231. LIMITATIONS.

       ``(a) Federal Control Prohibited.--Nothing in this title 
     shall be construed to permit,

[[Page 19918]]

     allow, encourage, or authorize any Federal control over any 
     aspect of any private, religious, or home school, whether or 
     not a home school is treated as a private school or home 
     school under State law. This section shall not be construed 
     to prohibit private, religious, or home schools from 
     participation in programs or services under this title.
       ``(b) No Change in State Control Encouraged or Required.--
     Nothing in this title shall be construed to encourage or 
     require any change in a State's treatment of any private, 
     religious, or home school, whether or not a home school is 
     treated as a private school or home school under State law.
       ``(c) National System of Teacher Certification or Licensure 
     Prohibited.--Nothing in this title shall be construed to 
     permit, allow, encourage, or authorize the Secretary to 
     establish or support any national system of teacher 
     certification or licensure.''.

                      TITLE III--INSTITUTIONAL AID

     SEC. 301. PROGRAM PURPOSE.

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

     SEC. 302. DEFINITIONS; ELIGIBILITY.

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

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

       Section 316 (20 U.S.C. 1059c) is amended--
       (1) by striking subsection (b)(3) and inserting the 
     following:
       ``(3) Tribal college or university.--The term `Tribal 
     College or University' means an institution that--
       ``(A) qualifies for funding under the Tribally Controlled 
     College or University Assistance Act of 1978 (25 U.S.C. 1801 
     et seq.) or the Navajo Community College Assistance Act of 
     1978 (25 U.S.C. 640a note); or
       ``(B) is cited in section 532 of the Equity in Educational 
     Land-Grant Status Act of 1994 (7 U.S.C. 301 note).'';
       (2) in subsection (c)(2)--
       (A) in subparagraph (B), by inserting before the semicolon 
     at the end the following: ``and the acquisition of real 
     property adjacent to the campus of the institution'';
       (B) by redesignating subparagraphs (G), (H), (I), (J), (K), 
     and (L) as subparagraphs (H), (I), (J), (K), (L), and (N), 
     respectively;
       (C) by inserting after subparagraph (F) the following:
       ``(G) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents;'';
       (D) in subparagraph (L) (as redesignated by subparagraph 
     (B)), by striking ``and'' after the semicolon;
       (E) by inserting after subparagraph (L) (as redesignated by 
     subparagraph (B)) the following:
       ``(M) developing or improving facilities for Internet use 
     or other distance education technologies; and''; and
       (F) in subparagraph (N) (as redesignated by subparagraph 
     (B)), by striking ``subparagraphs (A) through (K)'' and 
     inserting ``subparagraphs (A) through (M)''; and
       (3) by striking subsection (d) and inserting the following:
       ``(d) Application, Plan, and Allocation.--
       ``(1) Institutional eligibility.--To be eligible to receive 
     assistance under this section, a Tribal College or University 
     shall be an eligible institution under section 312(b).
       ``(2) Application.--
       ``(A) In general.--A Tribal College or University desiring 
     to receive assistance under this section shall submit an 
     application to the Secretary at such time, and in such 
     manner, as the Secretary may reasonably require.
       ``(B) Streamlined process.--The Secretary shall establish 
     application requirements in such a manner as to simplify and 
     streamline the process for applying for grants.
       ``(3) Allocations to institutions.--
       ``(A) Construction grants.--
       ``(i) In general.--Of the amount appropriated to carry out 
     this section for any fiscal year, the Secretary may reserve 
     30 percent for the purpose of awarding 1-year grants of not 
     less than $1,000,000 to address construction, maintenance, 
     and renovation needs at eligible institutions.
       ``(ii) Preference.--In providing grants under clause (i), 
     the Secretary shall give preference to eligible institutions 
     that have not yet received an award under this section.
       ``(B) Allotment of remaining funds.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Secretary shall distribute the remaining funds appropriated 
     for any fiscal year to each eligible institution as follows:

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

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

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

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

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

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

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

       ``(a) Program Authorized.--The Secretary shall provide 
     grants and related assistance to Native American-serving, 
     nontribal institutions to enable such institutions to improve 
     and expand their capacity to serve Native Americans.
       ``(b) Definitions.--In this section:
       ``(1) Native american.--The term `Native American' means an 
     individual who is of a tribe, people, or culture that is 
     indigenous to the United States.
       ``(2) Native american-serving, nontribal institution.--The 
     term `Native American-serving, nontribal institution' means 
     an institution of higher education that, at the time of 
     application--
       ``(A) has an enrollment of undergraduate students that is 
     not less than 10 percent Native American students; and
       ``(B) is not a Tribal College or University (as defined in 
     section 316).
       ``(c) Authorized Activities.--
       ``(1) Types of activities authorized.--Grants awarded under 
     this section shall be used by Native American-serving, 
     nontribal institutions to assist such institutions to plan, 
     develop, undertake, and carry out activities to improve and 
     expand such institutions' capacity to serve Native Americans.
       ``(2) Examples of authorized activities.--Such programs may 
     include--
       ``(A) the purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes;
       ``(B) renovation and improvement in classroom, library, 
     laboratory, and other instructional facilities;
       ``(C) support of faculty exchanges, and faculty development 
     and faculty fellowships to assist faculty in attaining 
     advanced degrees in the faculty's field of instruction;
       ``(D) curriculum development and academic instruction;
       ``(E) the purchase of library books, periodicals, 
     microfilm, and other educational materials;
       ``(F) funds and administrative management, and acquisition 
     of equipment for use in strengthening funds management;
       ``(G) the joint use of facilities such as laboratories and 
     libraries; and
       ``(H) academic tutoring and counseling programs and student 
     support services.
       ``(d) Application Process.--
       ``(1) Institutional eligibility.--A Native American-
     serving, nontribal institution desiring to receive assistance 
     under this section shall submit to the Secretary such 
     enrollment data as may be necessary to demonstrate that the 
     institution is a Native American-serving, nontribal 
     institution, along with such other information and data as 
     the Secretary may by regulation require.
       ``(2) Applications.--
       ``(A) Permission to submit applications.--Any institution 
     that is determined by the Secretary to be a Native American-
     serving, nontribal institution may submit an application for 
     assistance under this section to the Secretary.
       ``(B) Simplified and streamlined format.--The Secretary 
     shall, to the extent possible, prescribe a simplified and 
     streamlined format for applications under this section that 
     takes into account the limited number of institutions that 
     are eligible for assistance under this section.
       ``(C) Content.--An application submitted under subparagraph 
     (A) shall include--
       ``(i) a 5-year plan for improving the assistance provided 
     by the Native American-serving, nontribal institution to 
     Native Americans; and

[[Page 19919]]

       ``(ii) such other information and assurances as the 
     Secretary may require.
       ``(3) Special rules.--
       ``(A) Eligibility.--No Native American-serving, nontribal 
     institution that receives funds under this section shall 
     concurrently receive funds under other provisions of this 
     part or part B.
       ``(B) Exemption.--Section 313(d) shall not apply to 
     institutions that are eligible to receive funds under this 
     section.
       ``(C) Distribution.--In awarding grants under this section, 
     the Secretary shall, to the extent possible and consistent 
     with the competitive process under which such grants are 
     awarded, ensure maximum and equitable distribution among all 
     eligible institutions.''.
       (b) Minimum Grant Amount.--Section 399 (20 U.S.C. 1068h) is 
     amended by adding at the end the following:
       ``(c) Minimum Grant Amount.--The minimum amount of a grant 
     under this title shall be $200,000.''.

     SEC. 306. PART B DEFINITIONS.

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

     SEC. 307. GRANTS TO INSTITUTIONS.

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

     SEC. 308. ALLOTMENTS TO INSTITUTIONS.

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

     SEC. 309. PROFESSIONAL OR GRADUATE INSTITUTIONS.

       Section 326 (20 U.S.C. 1063b) is amended--
       (1) in subsection (c)--
       (A) in paragraph (2), by inserting ``, and for the 
     acquisition and development of real property that is adjacent 
     to the campus for such construction, maintenance, renovation, 
     or improvement'' after ``services'';
       (B) by redesignating paragraphs (5) through (7) as 
     paragraphs (7) through (9), respectively;
       (C) by inserting after paragraph (4) the following:
       ``(5) tutoring, counseling, and student service programs 
     designed to improve academic success;
       ``(6) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents;'';
       (D) in paragraph (7) (as redesignated by subparagraph (B)), 
     by striking ``establish or improve'' and inserting 
     ``establishing or improving'';
       (E) in paragraph (8) (as redesignated by subparagraph 
     (B))--
       (i) by striking ``assist'' and inserting ``assisting''; and
       (ii) by striking ``and'' after the semicolon;
       (F) in paragraph (9) (as redesignated by subparagraph (B)), 
     by striking the period and inserting ``; and''; and
       (G) by adding at the end the following:
       ``(10) other activities proposed in the application 
     submitted under subsection (d) that--
       ``(A) contribute to carrying out the purposes of this part; 
     and
       ``(B) are approved by the Secretary as part of the review 
     and acceptance of such application.'';
       (2) in subsection (e)--
       (A) in paragraph (1)--
       (i) by inserting a colon after ``the following'';
       (ii) in subparagraph (Q), by striking ``and'' at the end;
       (iii) in subparagraph (R), by striking the period and 
     inserting a semicolon; and
       (iv) by adding at the end the following:
       ``(S) Alabama State University qualified graduate program;
       ``(T) Coppin State University qualified graduate program;
       ``(U) Prairie View A & M University qualified graduate 
     program;
       ``(V) Fayetteville State University qualified graduate 
     program;
       ``(W) Delaware State University qualified graduate program;
       ``(X) Langston University qualified graduate program; and
       ``(Y) West Virginia State University qualified graduate 
     program.'';
       (B) in paragraph (2)(A)--
       (i) by inserting ``in law or'' after ``instruction''; and
       (ii) by striking ``mathematics, or'' and inserting 
     ``mathematics, psychometrics, or'';
       (C) in paragraph (3)--
       (i) by striking ``1998'' and inserting ``2007''; and
       (ii) by striking ``(Q) and (R)'' and inserting ``(S), (T), 
     (U), (V), (W), (X), and (Y)'';
       (3) in subsection (f)--
       (A) in paragraph (1), by striking ``(P)'' and inserting 
     ``(R)'';
       (B) in paragraph (2), by striking ``(Q) and (R)'' and 
     inserting ``(S), (T), (U), (V), (W), (X), and (Y)''; and
       (C) in paragraph (3)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``(R)'' and inserting ``(Y)'';
       (ii) by striking subparagraphs (A) and (B) and inserting 
     the following:
       ``(A) The amount of non-Federal funds for the fiscal year 
     for which the determination is made that the institution or 
     program listed in subsection (e)--
       ``(i) allocates from institutional resources;
       ``(ii) secures from non-Federal sources, including amounts 
     appropriated by the State and amounts from the private 
     sector; and
       ``(iii) will utilize to match Federal funds awarded for the 
     fiscal year for which the determination is made under this 
     section to the institution or program.
       ``(B) The number of students enrolled in the qualified 
     graduate programs of the eligible institution or program, for 
     which the institution or program received and allocated 
     funding under this section in the preceding year.'';
       (iii) in subparagraph (C), by striking ``(or the 
     equivalent) enrolled in the eligible professional or graduate 
     school'' and all that follows through the period and 
     inserting ``enrolled in the qualified programs or 
     institutions listed in paragraph (1).'';
       (iv) in subparagraph (D)--

       (I) by striking ``students'' and inserting ``Black American 
     students or minority students''; and
       (II) by striking ``institution'' and inserting 
     ``institution or program''; and

       (v) by striking subparagraph (E) and inserting the 
     following:
       ``(E) The percentage that the total number of Black 
     American students and minority students who receive their 
     first professional, master's, or doctoral degrees from the 
     institution or program in the academic year preceding the 
     academic year for which the determination is made, represents 
     of the total number of Black American students and minority 
     students in the United States who receive their first 
     professional, master's, or doctoral degrees in the 
     professions or disciplines related to the course of study at 
     such institution or program, respectively, in the preceding 
     academic year.''; and
       (4) in subsection (g), by striking ``1998'' and inserting 
     ``2007''.

     SEC. 310. AUTHORITY OF THE SECRETARY.

       Section 345 (20 U.S.C. 1066d) is amended--
       (1) in paragraph (6), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(8) not later than 90 days after the date of enactment of 
     the Higher Education Amendments of 2007, shall submit to the 
     authorizing committees a report on the progress of the 
     Department in implementing the recommendations made by the 
     Government Accountability Office in October 2006 for 
     improving the Historically Black College and Universities 
     Capital Financing Program.''.

     SEC. 311. AUTHORIZATION OF APPROPRIATIONS.

       Subsection (a) of section 399 (20 U.S.C. 1068h) is amended 
     to read as follows:
       ``(a) Authorizations.--
       ``(1) Part a.--(A) There are authorized to be appropriated 
     to carry out part A (other than sections 316, 317, and 318) 
     such sums as may be necessary for fiscal year 2008 and each 
     of the 5 succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     section 316 such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.
       ``(C) There are authorized to be appropriated to carry out 
     section 317 such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.
       ``(D) There are authorized to be appropriated to carry out 
     section 318 such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.
       ``(2) Part b.--(A) There are authorized to be appropriated 
     to carry out part B (other than section 326) such sums as may 
     be necessary for fiscal year 2008 and each of the 5 
     succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     section 326 such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.
       ``(3) Part c.--There are authorized to be appropriated to 
     carry out part C such sums as may be necessary for fiscal 
     year 2008 and each of the 5 succeeding fiscal years.
       ``(4) Part d.--(A) There are authorized to be appropriated 
     to carry out part D (other than section 345(7), but including 
     section 347) such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     section 345(7) such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.
       ``(5) Part e.--There are authorized to be appropriated to 
     carry out part E such sums as may be necessary for fiscal 
     year 2008 and each of the 5 succeeding fiscal years.''.

     SEC. 312. TECHNICAL CORRECTIONS.

       Title III (20 U.S.C. 1051 et seq.) is further amended--

[[Page 19920]]

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

                      TITLE IV--STUDENT ASSISTANCE

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

     SEC. 401. FEDERAL PELL GRANTS.

       (a) Amendments.--Section 401 (20 U.S.C. 1070a) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) in the first sentence, by striking ``2004'' and 
     inserting ``2013''; and
       (ii) in the second sentence, by striking ``,,'' and 
     inserting ``,''; and
       (B) in paragraph (3), by striking ``this subpart'' and 
     inserting ``this section'';
       (2) in subsection (b)--
       (A) by striking paragraph (2)(A) and inserting the 
     following:
       ``(2)(A) The amount of the Federal Pell Grant for a student 
     eligible under this part shall be--
       ``(i) $5,400 for academic year 2008-2009;
       ``(ii) $5,700 for academic year 2009-2010;
       ``(iii) $6,000 for academic year 2010-2011; and
       ``(iv) $6,300 for academic year 2011-2012,

     less an amount equal to the amount determined to be the 
     expected family contribution with respect to that student for 
     that year.'';
       (B) by striking paragraph (3);
       (C) in paragraph (4) (as redesignated by subparagraph (C)), 
     by striking ``$400, except'' and all that follows through the 
     period and inserting ``10 percent of the maximum basic grant 
     level specified in the appropriate Appropriation Act for such 
     academic year, except that a student who is eligible for a 
     Federal Pell Grant in an amount that is equal to or greater 
     than 5 percent of such level but less than 10 percent of such 
     level shall be awarded a Federal Pell grant in the amount of 
     10 percent of such level.''; and
       (D) by striking paragraph (5) (as redesignated by 
     subparagraph (C)) and inserting the following:
       ``(5) In the case of a student who is enrolled, on at least 
     a half-time basis and for a period of more than 1 academic 
     year in a single award year in a 2-year or 4-year program of 
     instruction for which an institution of higher education 
     awards an associate or baccalaureate degree, the Secretary 
     shall award such student not more than 2 Federal Pell Grants 
     during that award year to permit such student to accelerate 
     the student's progress toward a degree. In the case of a 
     student receiving more than 1 Federal Pell Grant in a single 
     award year, the total amount of Federal Pell Grants awarded 
     to such student for the award year may exceed the maximum 
     basic grant level specified in the appropriate appropriations 
     Act for such award year.''; and
       (3) in subsection (c), by adding at the end the following:
       ``(5) The period of time during which a student may receive 
     Federal Pell Grants shall not exceed 18 semesters, or an 
     equivalent period of time as determined by the Secretary 
     pursuant to regulations, which period shall--
       ``(A) be determined without regard to whether the student 
     is enrolled on a full-time basis during any portion of the 
     period of time; and
       ``(B) include any period of time for which the student 
     received a Federal Pell Grant prior to July 1, 2008.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on July 1, 2008.

     SEC. 402. ACADEMIC COMPETITIVENESS GRANTS.

       Section 401A (20 U.S.C. 1070a-1) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Academic Competitiveness Grant Program Authorized.--
     The Secretary shall award grants, in the amounts specified in 
     subsection (d)(1), to eligible students to assist the 
     eligible students in paying their college education 
     expenses.'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``academic''; and
       (B) in paragraph (2), by striking ``third or fourth 
     academic'' and inserting ``third, fourth, or fifth'';
       (3) in subsection (c)--
       (A) in the matter preceding paragraph (1), by striking 
     ``full-time'' and all that follows through ``is made'' and 
     inserting ``student who'';
       (B) by striking paragraph (1) and inserting the following:
       ``(1) is eligible for a Federal Pell Grant for the award 
     year in which the determination of eligibility is made for a 
     grant under this section;'';
       (C) by striking paragraph (2) and inserting the following:
       ``(2) is enrolled or accepted for enrollment in an 
     institution of higher education on not less than a half-time 
     basis; and''; and
       (D) in paragraph (3)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) the first year of a program of undergraduate 
     education at a 2- or 4-year degree-granting institution of 
     higher education (including a program of not less than 1 year 
     for which the institution awards a certificate), has 
     successfully completed, after January 1, 2006, a rigorous 
     secondary school program of study established by a State or 
     local educational agency and recognized as such by the 
     Secretary;'';
       (ii) in subparagraph (B)--

       (I) in the matter preceding clause (i), by striking 
     ``academic'' and all that follows through ``higher 
     education'' and inserting ``year of a program of 
     undergraduate education at a 2- or 4-year degree-granting 
     institution of higher education (including a program of not 
     less than 2 years for which the institution awards a 
     certificate)''; and
       (II) in clause (ii)--

       (aa) by striking ``academic''; and
       (bb) by striking ``or'' after the semicolon at the end;
       (iii) in subparagraph (C)--

       (I) by striking ``academic'';
       (II) by striking ``four'' and inserting ``4'';
       (III) by striking clause (i)(II) and inserting the 
     following:
       ``(II) a critical foreign language; and''; and

       (IV) in clause (ii), by striking the period at the end and 
     inserting a semicolon; and

       (iv) by adding at the end the following:
       ``(D) the third or fourth year of a program of 
     undergraduate education at an institution of higher education 
     (as defined in section 101(a)) that demonstrates, to the 
     satisfaction of the Secretary, that the institution--
       ``(i) offers a single liberal arts curriculum leading to a 
     baccalaureate degree, under which students are not permitted 
     by the institution to declare a major in a particular subject 
     area, but do study, in such years, a subject described in 
     subparagraph (C)(i) that is at least equal to the 
     requirements for an academic major at an institution of 
     higher education that offers a baccalaureate degree in such 
     subject, as certified by the appropriate official of the 
     demonstrating institution; and
       ``(ii) offered such curriculum prior to February 8, 2006; 
     or
       ``(E) the fifth year of a program of undergraduate 
     education that requires 5 full years of coursework for which 
     a baccalaureate degree is awarded by a degree-granting 
     institution of higher education, as certified by the 
     appropriate official of such institution--
       ``(i) is pursuing a major in--

       ``(I) the physical, life, or computer sciences, 
     mathematics, technology, or engineering (as determined by the 
     Secretary pursuant to regulations); or
       ``(II) a critical foreign language; and

       ``(ii) has obtained a cumulative grade point average of at 
     least 3.0 (or the equivalent, as determined under regulations 
     prescribed by the Secretary) in the coursework required for 
     the major described in clause (i).'';
       (4) in subsection (d)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by striking ``The'' and inserting ``In general.--The'';
       (II) in clause (ii), by striking ``or'' after the semicolon 
     at the end;
       (III) in clause (iii), by striking ``subsection 
     (c)(3)(C).'' and inserting ``subparagraph (C) or (D) of 
     subsection (c)(3), for each of the 2 years described in such 
     subparagraphs; or''; and
       (IV) by adding at the end the following:

       ``(iv) $4,000 for an eligible student under subsection 
     (c)(3)(E).''; and
       (ii) in subparagraph (B)--

       (I) by striking ``Notwithstanding'' and inserting 
     ``Limitation; ratable reduction.--Notwithstanding'';
       (II) by redesignating clauses (i), (ii), and (iii), as 
     clauses (ii), (iii), and (iv), respectively; and
       (III) by inserting before clause (ii), as redesignated 
     under subclause (II), the following:

       ``(i) in any case in which a student attends an institution 
     of higher education on less than a full-time basis, the 
     amount of the grant that such student may receive shall be 
     reduced in the same manner as a Federal Pell Grant is reduced 
     under section 401(b)(2)(B);'';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Limitations.--
       ``(A) No grants for previous credit.--The Secretary may not 
     award a grant under this section to any student for any year 
     of a program of undergraduate education for which the student 
     received credit before the date of enactment of the Higher 
     Education Reconciliation Act of 2005.
       ``(B) Number of grants.--
       ``(i) First year.--In the case of a student described in 
     subsection (c)(3)(A), the Secretary may not award more than 1 
     grant to such student for such first year of study.
       ``(ii) Second year.--In the case of a student described in 
     subsection (c)(3)(B), the Secretary may not award more than 1 
     grant to such student for such second year of study.
       ``(iii) Third and fourth years.--In the case of a student 
     described in subparagraph (C) or (D) of subsection (c)(3), 
     the Secretary may not award more than 1 grant to such student 
     for each of the third and fourth years of study.
       ``(iv) Fifth year.--In the case of a student described in 
     subsection (c)(3)(E), the Secretary may not award more than 1 
     grant to such student for such fifth year of study.''; and
       (C) by adding at the end the following:
       ``(3) Calculation of grant payments.--An institution of 
     higher education shall make payments of a grant awarded under 
     this section in

[[Page 19921]]

     the same manner, using the same payment periods, as such 
     institution makes payments for Federal Pell Grants under 
     section 401.'';
       (5) by striking subsection (e)(2) and inserting the 
     following:
       ``(2) Availability of funds.--Funds made available under 
     paragraph (1) for a fiscal year shall remain available for 
     the succeeding fiscal year.'';
       (6) in subsection (f)--
       (A) by striking ``at least one'' and inserting ``not less 
     than 1''; and
       (B) by striking ``subsection (c)(3)(A) and (B)'' and 
     inserting ``subparagraphs (A) and (B) of subsection (c)(3)''; 
     and
       (7) in subsection (g), by striking ``academic'' and 
     inserting ``award''.

     SEC. 403. FEDERAL TRIO PROGRAMS.

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

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

       ``(iii) the extent to which the entity met or exceeded the 
     entity's objectives regarding the delivery of service to a 
     total number of students, as agreed upon by the entity and 
     the Secretary for the period; and
       ``(iv) the extent to which the entity met or exceeded the 
     entity's objectives regarding such students remaining in good 
     academic standing.
       ``(D) For programs authorized under section 402E, the 
     extent to which the entity met or exceeded the entity's 
     objectives for such program regarding--
       ``(i) the delivery of service to a total number of 
     students, as agreed upon by the entity and the Secretary for 
     the period;
       ``(ii) the provision of appropriate scholarly and research 
     activities for the students served by the program;
       ``(iii) the acceptance and enrollment of such students in 
     graduate programs; and
       ``(iv) the continued enrollment of such students in 
     graduate study and the attainment of doctoral degrees by 
     former program participants.
       ``(E) For programs authorized under section 402F, the 
     extent to which the entity met or exceeded the entity's 
     objectives for such program regarding--
       ``(i) the enrollment of students without a secondary school 
     diploma or its recognized equivalent, who were served by the 
     program, in programs leading to such diploma or equivalent;
       ``(ii) the enrollment of secondary school graduates who 
     were served by the program in programs of postsecondary 
     education;
       ``(iii) the delivery of service to a total number of 
     students, as agreed upon by the entity and the Secretary for 
     the period; and
       ``(iv) the provision of assistance to students served by 
     the program in completing financial aid applications and 
     college admission applications.
       ``(4) Measurement of progress.--In order to determine the 
     extent to which an outcome criterion described in paragraphs 
     (2) or (3) is met or exceeded, an eligible entity receiving 
     assistance under this chapter shall compare the eligible 
     entity's target for the criterion, as established in the 
     eligible entity's application, with the results for the 
     criterion, measured as of the last day of the applicable time 
     period for the determination.'';
       (6) in subsection (g) (as redesignated by paragraph (4))--
       (A) in the first sentence, by striking ``$700,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.''; and
       (B) by striking the fourth sentence; and
       (7) in subsection (h) (as redesignated by paragraph (4))--
       (A) by redesignating paragraphs (1) through (4) as 
     paragraphs (3) through (6), respectively;
       (B) by inserting before paragraph (3) (as redesignated by 
     subparagraph (A)) the following:
       ``(1) Different campus.--The term `different campus' means 
     a site of an institution of higher education that--
       ``(A) is geographically apart from the main campus of the 
     institution;
       ``(B) is permanent in nature; and
       ``(C) offers courses in educational programs leading to a 
     degree, certificate, or other recognized educational 
     credential.
       ``(2) Different population.--The term `different 
     population' means a group of individuals, with respect to 
     whom an eligible entity desires to serve through an 
     application for a grant under this chapter, that--
       ``(A) is separate and distinct from any other population 
     that the entity has applied for a grant under this chapter to 
     serve; or
       ``(B) while sharing some of the same needs as another 
     population that the eligible entity has applied for a grant 
     under this chapter to serve, has distinct needs for 
     specialized services.'';
       (C) in paragraph (5) (as redesignated by subparagraph 
     (A))--
       (i) in subparagraph (A), by striking ``or'' after the 
     semicolon;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (iii) by adding at the end the following:
       ``(C) was a member of a reserve component of the Armed 
     Forces called to active duty for a period of more than 180 
     days.''; and
       (D) in paragraph (6), by striking ``subparagraph (A) or (B) 
     of paragraph (3)'' and inserting ``subparagraph (A), (B), or 
     (C) of paragraph (5)''.
       (b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``to identify qualified 
     youths with potential for education at the postsecondary 
     level and to encourage such youths'' and inserting ``to 
     encourage eligible youths'';
       (B) in paragraph (2), by inserting ``, and facilitate the 
     application for,'' after ``the availability of''; and
       (C) in paragraph (3), by striking ``, but who have the 
     ability to complete such programs, to reenter'' and inserting 
     ``to enter or reenter, and complete'';
       (2) by redesignating subsection (c) as subsection (d);
       (3) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--Any project assisted under this 
     section shall provide--

[[Page 19922]]

       ``(1) academic tutoring, or connections to high quality 
     academic tutoring services, to enable students to complete 
     secondary or postsecondary courses, which may include 
     instruction in reading, writing, study skills, mathematics, 
     science, and other subjects;
       ``(2) advice and assistance in secondary course selection 
     and, if applicable, initial postsecondary course selection;
       ``(3) assistance in preparing for college entrance 
     examinations and completing college admission applications;
       ``(4)(A) information on both the full range of Federal 
     student financial aid programs (including Federal Pell Grant 
     awards and loan forgiveness) and resources for locating 
     public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(5) guidance on and assistance in--
       ``(A) secondary school reentry;
       ``(B) alternative education programs for secondary school 
     dropouts that lead to the receipt of a regular secondary 
     school diploma;
       ``(C) entry into general educational development (GED) 
     programs; or
       ``(D) postsecondary education; and
       ``(6) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents, including financial planning for 
     postsecondary education.
       ``(c) Permissible Services.--Any project assisted under 
     this section may provide services such as--
       ``(1) personal and career counseling or activities;
       ``(2) information and activities designed to acquaint 
     youths with the range of career options available to the 
     youths;
       ``(3) exposure to the campuses of institutions of higher 
     education, as well as cultural events, academic programs, and 
     other sites or activities not usually available to 
     disadvantaged youth;
       ``(4) workshops and counseling for families of students 
     served;
       ``(5) mentoring programs involving elementary or secondary 
     school teachers or counselors, faculty members at 
     institutions of higher education, students, or any 
     combination of such persons; and
       ``(6) programs and activities as described in subsection 
     (b) or paragraphs (1) through (5) of this subsection that are 
     specially designed for students who are limited English 
     proficient, students with disabilities, students who are 
     homeless children and youths (as such term is defined in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a)), or students who are in foster care or are 
     aging out of the foster care system.''; and
       (4) in the matter preceding paragraph (1) of subsection (d) 
     (as redesignated by paragraph (2)), by striking ``talent 
     search projects under this chapter'' and inserting ``projects 
     under this section''.
       (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is 
     amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--Any project assisted under this 
     section shall provide--
       ``(1) academic tutoring to enable students to complete 
     secondary or postsecondary courses, which may include 
     instruction in reading, writing, study skills, mathematics, 
     science, and other subjects;
       ``(2) advice and assistance in secondary and postsecondary 
     course selection;
       ``(3) assistance in preparing for college entrance 
     examinations and completing college admission applications;
       ``(4)(A) information on both the full range of Federal 
     student financial aid programs (including Federal Pell Grant 
     awards and loan forgiveness) and resources for locating 
     public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(5) guidance on and assistance in--
       ``(A) secondary school reentry;
       ``(B) alternative education programs for secondary school 
     dropouts that lead to the receipt of a regular secondary 
     school diploma;
       ``(C) entry into general educational development (GED) 
     programs; or
       ``(D) postsecondary education; and
       ``(6) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents, including financial planning for 
     postsecondary education.'';
       (2) in subsection (c)--
       (A) in the subsection heading, by striking ``Required 
     Services'' and inserting ``Additional Required Services for 
     Multiple-Year Grant Recipients''; and
       (B) by striking ``upward bound project assisted under this 
     chapter'' and inserting ``project assisted under this 
     section'';
       (3) by redesignating subsections (d) and (e) as subsections 
     (f) and (g), respectively;
       (4) by inserting after subsection (c) the following:
       ``(d) Permissible Services.--Any project assisted under 
     this section may provide such services as--
       ``(1) exposure to cultural events, academic programs, and 
     other activities not usually available to disadvantaged 
     youth;
       ``(2) information, activities and instruction designed to 
     acquaint youths participating in the project with the range 
     of career options available to the youths;
       ``(3) on-campus residential programs;
       ``(4) mentoring programs involving elementary school or 
     secondary school teachers or counselors, faculty members at 
     institutions of higher education, students, or any 
     combination of such persons;
       ``(5) work-study positions where youth participating in the 
     project are exposed to careers requiring a postsecondary 
     degree;
       ``(6) special services to enable veterans to make the 
     transition to postsecondary education; and
       ``(7) programs and activities as described in subsection 
     (b), subsection (c), or paragraphs (1) through (6) of this 
     subsection that are specially designed for students who are 
     limited English proficient, students with disabilities, 
     students who are homeless children and youths (as such term 
     is defined in section 725 of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11434a)), or students who are in 
     foster care or are aging out of the foster care system.
       ``(e) Priority.--In providing assistance under this section 
     the Secretary--
       ``(1) shall give priority to projects assisted under this 
     section that select not less than 30 percent of all first-
     time participants in the projects from students who have a 
     high academic risk for failure; and
       ``(2) shall not deny participation in a project assisted 
     under this section to a student because the student will 
     enter the project after the 9th grade.'';
       (5) in the matter preceding paragraph (1) of subsection (f) 
     (as redesignated by paragraph (3)), by striking ``upward 
     bound projects under this chapter'' and inserting ``projects 
     under this section''; and
       (6) in subsection (g) (as redesignated by paragraph (3))--
       (A) by striking ``during June, July, and August'' each 
     place the term occurs and inserting ``during the summer 
     school recess, for a period not to exceed 3 months''; and
       (B) by striking ``(b)(10)'' and inserting ``(d)(5)''.
       (d) Student Support Services.--Section 402D (20 U.S.C. 
     1070a-14) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``and'' after the 
     semicolon;
       (B) by striking paragraph (3) and inserting the following:
       ``(3) to foster an institutional climate supportive of the 
     success of low-income and first generation college students, 
     students with disabilities, students who are limited English 
     proficient, students who are homeless children and youths (as 
     such term is defined in section 725 of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a)), and students who 
     are in foster care or are aging out of the foster care 
     system.''; and
       (C) by adding at the end the following:
       ``(4) to improve the financial literacy and economic 
     literacy of students, including--
       ``(A) basic personal income, household money management, 
     and financial planning skills; and
       ``(B) basic economic decisionmaking skills.'';
       (2) by redesignating subsections (c) and (d) as subsections 
     (d) and (e);
       (3) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--A project assisted under this 
     section shall provide--
       ``(1) academic tutoring to enable students to complete 
     postsecondary courses, which may include instruction in 
     reading, writing, study skills, mathematics, science, and 
     other subjects;
       ``(2) advice and assistance in postsecondary course 
     selection;
       ``(3)(A) information on both the full range of Federal 
     student financial aid programs (including Federal Pell Grant 
     awards and loan forgiveness) and resources for locating 
     public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(4) education or counseling services designed to improve 
     the financial literacy and economic literacy of students, 
     including financial planning for postsecondary education;
       ``(5) activities designed to assist students participating 
     in the project in securing college admission and financial 
     assistance for enrollment in graduate and professional 
     programs; and
       ``(6) activities designed to assist students enrolled in 2-
     year institutions of higher education in securing admission 
     and financial assistance for enrollment in a 4-year program 
     of postsecondary education.
       ``(c) Permissible Services.--A project assisted under this 
     section may provide services such as--
       ``(1) consistent, individualized personal, career, and 
     academic counseling, provided by assigned counselors;
       ``(2) information, activities, and instruction designed to 
     acquaint youths participating in the project with the range 
     of career options available to the students;
       ``(3) exposure to cultural events and academic programs not 
     usually available to disadvantaged students;
       ``(4) activities designed to acquaint students 
     participating in the project with the range of career options 
     available to the students;
       ``(5) mentoring programs involving faculty or upper class 
     students, or a combination thereof;
       ``(6) securing temporary housing during breaks in the 
     academic year for students who are homeless children and 
     youths (as such term is defined in section 725 of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)) or 
     were formerly homeless children and youths and students who 
     are in foster care or are aging out of the foster care 
     system; and

[[Page 19923]]

       ``(7) programs and activities as described in subsection 
     (b) or paragraphs (1) through (5) of this subsection that are 
     specially designed for students who are limited English 
     proficient, students with disabilities, students who are 
     homeless children and youths (as such term is defined in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a)) or were formerly homeless children and 
     youths, or students who are in foster care or are aging out 
     of the foster care system.'';
       (4) in subsection (d)(1) (as redesignated by paragraph 
     (2)), by striking ``subsection (b)'' and inserting 
     ``subsection (c)''; and
       (5) in the matter preceding paragraph (1) of subsection (e) 
     (as redesignated by paragraph (2)), by striking ``student 
     support services projects under this chapter'' and inserting 
     ``projects under this section''.
       (e) Postbaccalaureate Achievement Program Authority.--
     Section 402E (20 U.S.C. 1070a-15) is amended--
       (1) in subsection (b)--
       (A) in the subsection heading, by inserting ``Required'' 
     before ``Services'';
       (B) in the matter preceding paragraph (1), by striking ``A 
     postbaccalaureate achievement project assisted under this 
     section may provide services such as--'' and inserting ``A 
     project assisted under this section shall provide--'';
       (C) in paragraph (5), by inserting ``and'' after the 
     semicolon;
       (D) in paragraph (6), by striking the semicolon and 
     inserting a period; and
       (E) by striking paragraphs (7) and (8);
       (2) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively;
       (3) by inserting after subsection (b) the following:
       ``(c) Permissible Services.--A project assisted under this 
     section may provide services such as--
       ``(1) education or counseling services designed to improve 
     the financial literacy and economic literacy of students, 
     including financial planning for postsecondary education;
       ``(2) mentoring programs involving faculty members at 
     institutions of higher education, students, or any 
     combination of such persons; and
       ``(3) exposure to cultural events and academic programs not 
     usually available to disadvantaged students.'';
       (4) in the matter preceding paragraph (1) of subsection (d) 
     (as redesignated by paragraph (2)), by striking 
     ``postbaccalaureate achievement'';
       (5) in the matter preceding paragraph (1) of subsection (f) 
     (as redesignated by paragraph (2)), by striking 
     ``postbaccalaureate achievement project'' and inserting 
     ``project under this section''; and
       (6) in subsection (g) (as redesignated by paragraph (2))--
       (A) by striking ``402A(f)'' and inserting ``402A(g)''; and
       (B) by striking ``1993 through 1997'' and inserting ``2007 
     through 2012''.
       (f) Educational Opportunity Centers.--Section 402F (20 
     U.S.C. 1070a-16) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) to improve the financial literacy and economic 
     literacy of students, including--
       ``(A) basic personal income, household money management, 
     and financial planning skills; and
       ``(B) basic economic decisionmaking skills.''; and
       (2) in subsection (b)--
       (A) by redesignating paragraphs (5) through (10) as 
     paragraphs (6) through (11), respectively;
       (B) by inserting after paragraph (4) the following:
       ``(5) education or counseling services designed to improve 
     the financial literacy and economic literacy of students;'';
       (C) by striking paragraph (7) (as redesignated by 
     subparagraph (A)) and inserting the following:
       ``(7) individualized personal, career, and academic 
     counseling;''; and
       (D) by striking paragraph (11) (as redesignated by 
     subparagraph (A)) and inserting the following:
       ``(11) programs and activities as described in paragraphs 
     (1) through (10) that are specially designed for students who 
     are limited English proficient, students with disabilities, 
     or students who are homeless children and youths (as such 
     term is defined in section 725 of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11434a)), or programs and 
     activities for students who are in foster care or are aging 
     out of the foster care system.''.
       (g) Staff Development Activities.--Section 402G(b)(3) (20 
     U.S.C. 1070a-17(b)(3)) is amended by inserting ``, including 
     strategies for recruiting and serving students who are 
     homeless children and youths (as such term is defined in 
     section 725 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11434a)) and students who are in foster care or are 
     aging out of the foster care system'' before the period at 
     the end.
       (h) Reports, Evaluations, and Grants for Project 
     Improvement and Dissemination.--Section 402H (20 U.S.C. 
     1070a-18) is amended--
       (1) by striking the section heading and inserting 
     ``REPORTS, EVALUATIONS, AND GRANTS FOR PROJECT IMPROVEMENT 
     AND DISSEMINATION.'';
       (2) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (3) by inserting before subsection (b) (as redesignated by 
     paragraph (2)) the following:
       ``(a) Reports to the Authorizing Committees.--The Secretary 
     shall submit annually, to the authorizing committees, a 
     report that documents the performance of all programs funded 
     under this chapter. The report shall--
       ``(1) be submitted not later than 24 months after the 
     eligible entities receiving funds under this chapter are 
     required to report their performance to the Secretary;
       ``(2) focus on the programs' performance on the relevant 
     outcome criteria determined under section 402A(f)(4);
       ``(3) aggregate individual project performance data on the 
     outcome criteria in order to provide national performance 
     data for each program;
       ``(4) include, when appropriate, descriptive data, multi-
     year data, and multi-cohort data; and
       ``(5) include comparable data on the performance nationally 
     of low-income students, first-generation students, and 
     students with disabilities.''; and
       (4) in subsection (b) (as redesignated by paragraph (2)), 
     by striking paragraph (2) and inserting the following:
       ``(2) Practices.--
       ``(A) In general.--The evaluations described in paragraph 
     (1) shall identify institutional, community, and program or 
     project practices that are particularly effective in--
       ``(i) enhancing the access of low-income individuals and 
     first-generation college students to postsecondary education;
       ``(ii) the preparation of the individuals and students for 
     postsecondary education; and
       ``(iii) fostering the success of the individuals and 
     students in postsecondary education.
       ``(B) Primary purpose.--Any evaluation conducted under this 
     chapter shall have as its primary purpose the identification 
     of particular practices that further the achievement of the 
     outcome criteria determined under section 402A(f)(4).
       ``(C) Dissemination and use of evaluation findings.--The 
     Secretary shall disseminate to eligible entities and make 
     available to the public the practices identified under 
     subparagraph (B). The practices may be used by eligible 
     entities that receive assistance under this chapter after the 
     dissemination.
       ``(3) Evaluation special rules.--
       ``(A) Recruitment.--The Secretary shall not require an 
     eligible entity desiring to receive assistance under this 
     chapter to recruit students to serve as a control group for 
     purposes of evaluating any program or project assisted under 
     this chapter.
       ``(B) Permissible priority.--If the Secretary elects to 
     provide for the conduct of an evaluation of a program or 
     project under this chapter using a control group, then the 
     Secretary may give priority in providing assistance under 
     this chapter, subject to section 402C(e), to an eligible 
     entity that elects to participate in such an evaluation.''.

     SEC. 404. GAINING EARLY AWARENESS AND READINESS FOR 
                   UNDERGRADUATE PROGRAMS.

       (a) Early Intervention and College Awareness Program 
     Authorized.--Section 404A (20 U.S.C. 1070a-21) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Program Authorized.--The Secretary is authorized, in 
     accordance with the requirements of this chapter, to 
     establish a program that encourages eligible entities to 
     provide support to eligible low-income students to assist the 
     students in obtaining a secondary school diploma (or its 
     recognized equivalent) and to prepare for and succeed in 
     postsecondary education, by providing--
       ``(1) financial assistance, academic support, additional 
     counseling, mentoring, outreach, and supportive services to 
     middle school and secondary school students to reduce--
       ``(A) the risk of such students dropping out of school; or
       ``(B) the need for remedial education for such students at 
     the postsecondary level; and
       ``(2) information to students and their parents about the 
     advantages of obtaining a postsecondary education and the 
     college financing options for the students and their 
     parents.'';
       (2) by striking subsection (b)(2)(A) and inserting the 
     following:
       ``(A) give priority to eligible entities that have a prior, 
     demonstrated commitment to early intervention leading to 
     college access through collaboration and replication of 
     successful strategies;''; and
       (3) by striking subsection (c)(2) and inserting the 
     following:
       ``(2) a partnership--
       ``(A) consisting of--
       ``(i) 1 or more local educational agencies; and
       ``(ii) 1 or more degree granting institutions of higher 
     education; and
       ``(B) which may include not less than 2 other community 
     organizations or entities, such as businesses, professional 
     organizations, State agencies, institutions or agencies 
     sponsoring programs authorized under subpart 4, or other 
     public or private agencies or organizations.''.
       (b) Requirements.--Section 404B (20 U.S.C. 1070a-22) is 
     amended--
       (1) by striking subsection (a) and inserting the following: 
     --
       ``(a) Funding Rules.--
       ``(1) Distribution.--In awarding grants from the amount 
     appropriated under section 404G for a fiscal year, the 
     Secretary shall take into consideration--
       ``(A) the geographic distribution of such awards; and

[[Page 19924]]

       ``(B) the distribution of such awards between urban and 
     rural applicants.
       ``(2) Special rule.--The Secretary shall annually 
     reevaluate the distribution of funds described in paragraph 
     (1) based on number, quality, and promise of the 
     applications.'';
       (2) by striking subsections (b), (e), and (f);
       (3) by redesignating subsections (c), (d), and (g) as 
     subsections (b), (c), and (d), respectively; and
       (4) by adding at the end the following:
       ``(e) Supplement, Not Supplant.--Grant funds awarded under 
     this chapter shall be used to supplement, and not supplant, 
     other Federal, State, and local funds that would otherwise be 
     expended to carry out activities assisted under this 
     chapter.''.
       (c) Application.--Section 404C (20 U.S.C. 1070a-23) is 
     amended--
       (1) in the section heading, by striking ``ELIGIBLE ENTITY 
     PLANS'' and inserting ``APPLICATIONS'';
       (2) in subsection (a)--
       (A) in the subsection heading, by striking ``Plan'' and 
     inserting ``Application'';
       (B) in paragraph (1)--
       (i) by striking ``a plan'' and inserting ``an 
     application''; and
       (ii) by striking the second sentence; and
       (C) by striking paragraph (2) and inserting the following:
       ``(2) Contents.--Each application submitted pursuant to 
     paragraph (1) shall be in such form, contain or be 
     accompanied by such information or assurances, and be 
     submitted at such time as the Secretary may require. Each 
     such application shall, at a minimum--
       ``(A) describe the activities for which assistance under 
     this chapter is sought, including how the eligible entity 
     will carry out the required activities described in section 
     404D(a);
       ``(B) describe how the eligible agency will meet the 
     requirements of section 404E;
       ``(C) provide assurances that adequate administrative and 
     support staff will be responsible for coordinating the 
     activities described in section 404D;
       ``(D) ensure that activities assisted under this chapter 
     will not displace an employee or eliminate a position at a 
     school assisted under this chapter, including a partial 
     displacement such as a reduction in hours, wages or 
     employment benefits;
       ``(E) describe, in the case of an eligible entity described 
     in section 404A(c)(2), how the eligible entity will define 
     the cohorts of the students served by the eligible entity 
     pursuant to section 404B(d), and how the eligible entity will 
     serve the cohorts through grade 12, including--
       ``(i) how vacancies in the program under this chapter will 
     be filled; and
       ``(ii) how the eligible entity will serve students 
     attending different secondary schools;
       ``(F) describe how the eligible entity will coordinate 
     programs with other existing Federal, State, or local 
     programs to avoid duplication and maximize the number of 
     students served;
       ``(G) provide such additional assurances as the Secretary 
     determines necessary to ensure compliance with the 
     requirements of this chapter; and
       ``(H) provide information about the activities that will be 
     carried out by the eligible entity to support systemic 
     changes from which future cohorts of students will 
     benefit.'';
       (3) in the matter preceding subparagraph (A) of subsection 
     (b)(1)--
       (A) by striking ``a plan'' and inserting ``an 
     application''; and
       (B) by striking ``such plan'' and inserting ``such 
     application''; and
       (4) in subsection (c)(1), by striking the semicolon at the 
     end and inserting ``including--
       ``(A) the amount contributed to a student scholarship fund 
     established under section 404E; and
       ``(B) the amount of the costs of administering the 
     scholarship program under section 404E;''.
       (d) Activities.--Section 404D (20 U.S.C. 1070a-24) is 
     amended to read as follows:

     ``SEC. 404D. ACTIVITIES.

       ``(a) Required Activities.--Each eligible entity receiving 
     a grant under this chapter shall carry out the following:
       ``(1) Provide information regarding financial aid for 
     postsecondary education to participating students in the 
     cohort described in subsection 404B(d)(1)(A).
       ``(2) Encourage student enrollment in rigorous and 
     challenging curricula and coursework, in order to reduce the 
     need for remedial coursework at the postsecondary level.
       ``(3) Support activities designed to improve the number of 
     participating students who--
       ``(A) obtain a secondary school diploma; and
       ``(B) complete applications for and enroll in a program of 
     postsecondary education.
       ``(4) In the case of an eligible entity described in 
     section 404A(c)(1), provide for the scholarships described in 
     section 404E.
       ``(b) Optional Activities for States and Partnerships.--An 
     eligible entity that receives a grant under this chapter may 
     use grant funds to carry out 1 or more of the following 
     activities:
       ``(1) Providing tutoring and supporting mentors, including 
     adults or former participants of a program under this 
     chapter, for eligible students.
       ``(2) Conducting outreach activities to recruit priority 
     students described in subsection (d) to participate in 
     program activities.
       ``(3) Providing supportive services to eligible students.
       ``(4) Supporting the development or implementation of 
     rigorous academic curricula, which may include college 
     preparatory, Advanced Placement, or International 
     Baccalaureate programs, and providing participating students 
     access to rigorous core courses that reflect challenging 
     State academic standards.
       ``(5) Supporting dual or concurrent enrollment programs 
     between the secondary school and institution of higher 
     education partners of an eligible entity described in section 
     404A(c)(2), and other activities that support participating 
     students in--
       ``(A) meeting challenging academic standards;
       ``(B) successfully applying for postsecondary education;
       ``(C) successfully applying for student financial aid; and
       ``(D) developing graduation and career plans.
       ``(6) Providing support for scholarships described in 
     section 404E.
       ``(7) Introducing eligible students to institutions of 
     higher education, through trips and school-based sessions.
       ``(8) Providing an intensive extended school day, school 
     year, or summer program that offers--
       ``(A) additional academic classes; or
       ``(B) assistance with college admission applications.
       ``(9) Providing other activities designed to ensure 
     secondary school completion and postsecondary education 
     enrollment of at-risk children, such as--
       ``(A) the identification of at-risk children;
       ``(B) after-school and summer tutoring;
       ``(C) assistance to at-risk children in obtaining summer 
     jobs;
       ``(D) academic counseling;
       ``(E) volunteer and parent involvement;
       ``(F) encouraging former or current participants of a 
     program under this chapter to serve as peer counselors;
       ``(G) skills assessments;
       ``(H) personal counseling;
       ``(I) family counseling and home visits;
       ``(J) staff development; and
       ``(K) programs and activities described in this subsection 
     that are specially designed for students who are limited 
     English proficient.
       ``(10) Enabling eligible students to enroll in Advanced 
     Placement or International Baccalaureate courses, or college 
     entrance examination preparation courses.
       ``(11) Providing services to eligible students in the 
     participating cohort described in section 404B(d)(1)(A), 
     through the first year of attendance at an institution of 
     higher education.
       ``(c) Additional Optional Activities for States.--In 
     addition to the required activities described in subsection 
     (a) and the optional activities described in subsection (b), 
     an eligible entity described in section 404A(c)(1) receiving 
     funds under this chapter may use grant funds to carry out 1 
     or more of the following activities:
       ``(1) Providing technical assistance to--
       ``(A) middle schools or secondary schools that are located 
     within the State; or
       ``(B) partnerships described in section 404A(c)(2) that are 
     located within the State.
       ``(2) Providing professional development opportunities to 
     individuals working with eligible cohorts of students 
     described in section 404B(d)(1)(A).
       ``(3) Providing strategies and activities that align 
     efforts in the State to prepare eligible students for 
     attending and succeeding in postsecondary education, which 
     may include the development of graduation and career plans.
       ``(4) Disseminating information on the use of 
     scientifically based research and best practices to improve 
     services for eligible students.
       ``(5)(A) Disseminating information on effective coursework 
     and support services that assist students in obtaining the 
     goals described in subparagraph (B)(ii).
       ``(B) Identifying and disseminating information on best 
     practices with respect to--
       ``(i) increasing parental involvement; and
       ``(ii) preparing students, including students with 
     disabilities and students who are limited English proficient, 
     to succeed academically in, and prepare financially for, 
     postsecondary education.
       ``(6) Working to align State academic standards and 
     curricula with the expectations of postsecondary institutions 
     and employers.
       ``(7) Developing alternatives to traditional secondary 
     school that give students a head start on attaining a 
     recognized postsecondary credential (including an industry 
     certificate, an apprenticeship, or an associate's or a 
     bachelor's degree), including school designs that give 
     students early exposure to college-level courses and 
     experiences and allow students to earn transferable college 
     credits or an associate's degree at the same time as a 
     secondary school diploma.
       ``(8) Creating community college programs for drop-outs 
     that are personalized drop-out recovery programs that allow 
     drop-outs to complete a regular secondary school diploma and 
     begin college-level work.
       ``(d) Priority Students.--For eligible entities not using a 
     cohort approach, the eligible entity shall treat as priority 
     students any student in middle or secondary school who is 
     eligible--
       ``(1) to be counted under section 1124(c) of the Elementary 
     and Secondary Education Act of 1965;
       ``(2) for free or reduced price meals under the Richard B. 
     Russell National School Lunch Act;
       ``(3) for assistance under a State program funded under 
     part A or E of title IV of the Social Security Act (42 U.S.C. 
     601 et seq., 670 et seq.); or
       ``(4) for assistance under subtitle B of title VII of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11431 et 
     seq.).
       ``(e) Allowable Providers.--In the case of eligible 
     entities described in section 404A(c)(1), the activities 
     required by this section may be

[[Page 19925]]

     provided by service providers such as community-based 
     organizations, schools, institutions of higher education, 
     public and private agencies, nonprofit and philanthropic 
     organizations, businesses, institutions and agencies 
     sponsoring programs authorized under subpart 4, and other 
     organizations the State determines appropriate.''.
       (e) Scholarship Component.--Section 404E (20 U.S.C. 1070a-
     25) is amended--
       (1) by striking subsections (e) and (f);
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (d), (f), and (g), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Limitation.--
       ``(1) In general.--Subject to paragraph (2), each eligible 
     entity described in section 404A(c)(1) that receives a grant 
     under this chapter shall use not less than 25 percent and not 
     more than 50 percent of the grant funds for activities 
     described in section 404D (except for the activity described 
     in subsection (a)(4) of such section), with the remainder of 
     such funds to be used for a scholarship program under this 
     section in accordance with such subsection.
       ``(2) Exception.--Notwithstanding paragraph (1), the 
     Secretary may allow an eligible entity to use more than 50 
     percent of grant funds received under this chapter for such 
     activities, if the eligible entity demonstrates that the 
     eligible entity has another means of providing the students 
     with the financial assistance described in this section and 
     describes such means in the application submitted under 
     section 404C.
       ``(c) Notification of Eligibility.--Each eligible entity 
     providing scholarships under this section shall provide 
     information on the eligibility requirements for the 
     scholarships to all participating students upon the students' 
     entry into the programs assisted under this chapter.'';
       (4) in subsection (d) (as redesignated by paragraph (2)), 
     by striking ``the lesser of'' and all that follows through 
     the period at the end of paragraph (2) and inserting ``the 
     minimum Federal Pell Grant award under section 401 for such 
     award year.'';
       (5) by inserting after subsection (d) (as redesignated by 
     paragraph (2) and amended by paragraph (4)) the following:
       ``(e) Portability of Assistance.--
       ``(1) In general.--Each eligible entity described in 
     section 404A(c)(1) that receives a grant under this chapter 
     shall create or organize a trust for each cohort described in 
     section 404B(d)(1)(A) for which the grant is sought in the 
     application submitted by the entity, which trust shall be an 
     amount that is not less than the minimum scholarship amount 
     described in subsection (d), multiplied by the number of 
     students participating in the cohort.
       ``(2) Requirement for portability.--Funds contributed to 
     the trust for a cohort shall be available to a student in the 
     cohort when the student has--
       ``(A) completed a secondary school diploma, its recognized 
     equivalent, or other recognized alternative standard for 
     individuals with disabilities; and
       ``(B) enrolled in an institution of higher education.
       ``(3) Qualified educational expenses.--Funds available to 
     an eligible student from a trust may be used for--
       ``(A) tuition, fees, books, supplies, and equipment 
     required for the enrollment or attendance of the eligible 
     student at an institution of higher education; and
       ``(B) in the case of an eligible student with special 
     needs, expenses for special needs services which are incurred 
     in connection with such enrollment or attendance.
       ``(4) Return of funds.--
       ``(A) Redistribution.--
       ``(i) In general.--Trust funds that are not used by an 
     eligible student within 6 years of the student's scheduled 
     completion of secondary school may be redistributed by the 
     eligible entity to other eligible students.
       ``(ii) Return of excess to the secretary.--If, after 
     meeting the requirements of paragraph (1) and, if applicable, 
     redistributing excess funds in accordance with clause (i), an 
     eligible entity has funds remaining, the eligible entity 
     shall return excess funds to the Secretary for distribution 
     to other grantees under this chapter.
       ``(B) Nonparticipating entity.--Notwithstanding 
     subparagraph (A), in the case of an eligible entity described 
     in section 404A(c)(1)(A) that does not receive assistance 
     under this subpart for 6 fiscal years, the eligible entity 
     shall return any trust funds not awarded or obligated to 
     eligible students to the Secretary for distribution to other 
     grantees under this chapter.''; and
       (6) in subsection (g) (as redesignated by paragraph (2))--
       (A) in paragraph (2), by striking ``1993'' and inserting 
     ``2001''; and
       (B) in paragraph (4), by striking ``early intervention 
     component required under section 404D'' and inserting 
     ``activities required under section 404D(a)''.
       (f) Repeal of 21st Century Scholar Certificates.--Chapter 2 
     of subpart 2 of part A of title IV (20 U.S.C. 1070a-21 et 
     seq.) is further amended--
       (1) by striking section 404F; and
       (2) by redesignating sections 404G and 404H as sections 
     404F and 404G, respectively.
       (g) Authorization of Appropriations.--Section 404G (as 
     redesignated by subsection (f)) (20 U.S.C. 1070a-28) is 
     amended by striking ``$200,000,000 for fiscal year 1999'' and 
     all that follows through the period and inserting ``such sums 
     as may be necessary for fiscal year 2008 and each of the 5 
     succeeding fiscal years.''.
       (h) Conforming Amendments.--Chapter 2 of subpart 2 of part 
     A of title IV (20 U.S.C. 1070a-21 et seq.) is further 
     amended--
       (1) in section 404A(b)(1), by striking ``404H'' and 
     inserting ``404G'';
       (2) in section 404B(a)(1), by striking ``404H'' and 
     inserting ``404G''; and
       (3) in section 404F(c) (as redesignated by subsection 
     (f)(2)), by striking ``404H'' and inserting ``404G''.

     SEC. 405. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.

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

     SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY 
                   GRANTS.

       (a) Appropriations Authorized.--Section 413A(b)(1) (20 
     U.S.C. 1070b(b)(1)) is amended by striking ``$675,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.''.
       (b) Allocation of Funds.--
       (1) Allocation of funds.--Section 413D (20 U.S.C. 1070b-3) 
     is amended--
       (A) by striking subsection (a)(4); and
       (B) in subsection (c)(3)(D), by striking ``$450'' and 
     inserting ``$600''.
       (2) Technical correction.--Section 413D(a)(1) (20 U.S.C. 
     1070b-3(a)(1)) is amended by striking ``such institution'' 
     and all that follows through the period and inserting ``such 
     institution received under subsections (a) and (b) of this 
     section for fiscal year 1999 (as such subsections were in 
     effect with respect to allocations for such fiscal year).''.

     SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP 
                   PROGRAM.

       (a) Appropriations Authorized.--Section 415A(b)(1) (20 
     U.S.C. 1070c(b)(1)) is amended to read as follows:
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this subpart such sums as may be necessary for 
     fiscal year 2008 and each of the 5 succeeding fiscal 
     years.''.
       (b) Applications.--Section 415C(b) (20 U.S.C. 1070c-2(b)) 
     is amended--
       (1) in the matter preceding subparagraph (A) of paragraph 
     (2), by striking ``not in excess of $5,000 per academic 
     year'' and inserting ``not to exceed the lesser of $12,500 or 
     the student's cost of attendance per academic year''; and
       (2) by striking paragraph (10) and inserting the following:
       ``(10) provides notification to eligible students that such 
     grants are--
       ``(A) Leveraging Educational Assistance Partnership grants; 
     and
       ``(B) funded by the Federal Government, the State, and 
     other contributing partners.''.
       (c) Grants for Access and Persistence.--Section 415E (20 
     U.S.C. 1070c-3a) is amended to read as follows:

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

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

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

[[Page 19926]]

       ``(bb) private corporations that are located in, or that do 
     business in, the State,

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

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

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

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

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

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

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

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

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

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

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

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

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

[[Page 19927]]

       ``(B) Content of notice.--The notification under 
     subparagraph (A)--
       ``(i) shall include--

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

       ``(aa) meet the requirement under paragraph (3);
       ``(bb) graduate from secondary school; and
       ``(cc) enroll at an institution of higher education that is 
     a partner in the partnership or qualifies under subsection 
     (d)(1)(C)(ii);

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

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

       ``(I) a determination of the student's financial 
     eligibility at the time of the student's enrollment at an 
     institution of higher education that is a partner in the 
     partnership or qualifies under subsection (d)(1)(C)(ii);
       ``(II) annual Federal and State appropriations; and
       ``(III) other aid received by the student at the time of 
     the student's enrollment at such institution of higher 
     education.

       ``(3) Eligibility.--In determining which students are 
     eligible to receive grants for access and persistence, the 
     State shall ensure that each such student meets not less than 
     1 of the following:
       ``(A) Meets not less than 2 of the following criteria, with 
     priority given to students meeting all of the following 
     criteria:
       ``(i) Has an expected family contribution equal to zero (as 
     described in section 479) or a comparable alternative based 
     upon the State's approved criteria in section 415C(b)(4).
       ``(ii) Has qualified for a free lunch, or at the State's 
     discretion a reduced price lunch, under the school lunch 
     program established under the Richard B. Russell National 
     School Lunch Act.
       ``(iii) Qualifies for the State's maximum undergraduate 
     award, as authorized under section 415C(b).
       ``(iv) Is participating in, or has participated in, a 
     Federal, State, institutional, or community early information 
     and intervention, mentoring, or outreach program, as 
     recognized by the State agency administering activities under 
     this section.
       ``(B) Is receiving, or has received, a grant for access and 
     persistence under this section, in accordance with paragraph 
     (5).
       ``(4) Grant award.--Once a student, including those 
     students who have received early notification under paragraph 
     (2) from the State, applies for admission to an institution 
     that is a partner in the partnership, files a Free 
     Application for Federal Student Aid and any related existing 
     State form, and is determined eligible by the State under 
     paragraph (3), the State shall--
       ``(A) issue the student a preliminary award certificate for 
     a grant for access and persistence with tentative award 
     amounts; and
       ``(B) inform the student that payment of the grant for 
     access and persistence award amounts is subject to 
     certification of enrollment and award eligibility by the 
     institution of higher education.
       ``(5) Duration of award.--An eligible student that receives 
     a grant for access and persistence under this section shall 
     receive such grant award for each year of such student's 
     undergraduate education in which the student remains eligible 
     for assistance under this title, including pursuant to 
     section 484(c), and remains financially eligible as 
     determined by the State, except that the State may impose 
     reasonable time limits to degree completion.
       ``(e) Use of Funds for Administrative Costs Prohibited.--A 
     State that receives an allotment under this section shall not 
     use any of the allotted funds to pay administrative costs 
     associated with any of the authorized activities described in 
     subsection (d).
       ``(f) Statutory and Regulatory Relief for Institutions of 
     Higher Education.--The Secretary may grant, upon the request 
     of an institution of higher education that is in a 
     partnership described in subsection (b)(2)(A)(ii) and that 
     receives an allotment under this section, a waiver for such 
     institution from statutory or regulatory requirements that 
     inhibit the ability of the institution to successfully and 
     efficiently participate in the activities of the partnership.
       ``(g) Applicability Rule.--The provisions of this subpart 
     which are not inconsistent with this section shall apply to 
     the program authorized by this section.
       ``(h) Maintenance of Effort Requirement.--Each State 
     receiving an allotment under this section for a fiscal year 
     shall provide the Secretary with an assurance that the 
     aggregate amount expended per student or the aggregate 
     expenditures by the State, from funds derived from non-
     Federal sources, for the authorized activities described in 
     subsection (d) for the preceding fiscal year were not less 
     than the amount expended per student or the aggregate 
     expenditure by the State for the activities for the second 
     preceding fiscal year.
       ``(i) Special Rule.--Notwithstanding subsection (h), for 
     purposes of determining a State's share of the cost of the 
     authorized activities described in subsection (d), the State 
     shall consider only those expenditures from non-Federal 
     sources that exceed the State's total expenditures for need-
     based grants, scholarships, and work-study assistance for 
     fiscal year 1999 (including any such assistance provided 
     under this subpart).
       ``(j) Continuation and Transition.--For the 2-year period 
     that begins on the date of enactment of the Higher Education 
     Amendments of 2007, the Secretary shall continue to award 
     grants under section 415E of the Higher Education Act of 1965 
     as such section existed on the day before the date of 
     enactment of such Act to States that choose to apply for 
     grants under such predecessor section.
       ``(k) Reports.--Not later than 3 years after the date of 
     enactment of the Higher Education Amendments of 2007 and 
     annually thereafter, the Secretary shall submit a report 
     describing the activities and the impact of the partnerships 
     under this section to the authorizing committees.''.

     SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE 
                   ENGAGED IN MIGRANT AND SEASONAL FARMWORK.

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

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

       (iii) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (iv) by redesignating subparagraph (F) as subparagraph (G);
       (v) by inserting after subparagraph (E) the following:
       ``(F) internships; and''; and
       (vi) in subparagraph (G) (as redesignated by clause (iv)), 
     by striking ``support services'' and inserting ``essential 
     supportive services (such as transportation and child care)'' 
     ; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``, and coordinating such services, assistance, 
     and aid with other non-program services, assistance, and aid, 
     including services, assistance, and aid provided by 
     community-based organizations, which may include mentoring 
     and guidance; and''; and
       (iii) by adding at the end the following:
       ``(C) for students attending 2-year institutions of higher 
     education, encouraging the students to transfer to 4-year 
     institutions of higher education, where appropriate, and 
     monitoring the rate of transfer of such students.'';
       (3) in subsection (e), by striking ``section 402A(c)(1)'' 
     and inserting ``section 402A(c)(2)'';
       (4) in subsection (f)--
       (A) in paragraph (1), by striking ``$150,000'' and 
     inserting ``$180,000''; and
       (B) in paragraph (2), by striking ``$150,000'' and 
     inserting ``$180,000'';
       (5) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively;
       (6) by inserting after subsection (f) the following:
       ``(g) Reservation of Funds.--From the amounts made 
     available under subsection (i), the Secretary may reserve not 
     more than a total of \1/2\ of 1 percent for outreach 
     activities, technical assistance, and professional 
     development programs relating to the programs under 
     subsection (a).'';
       (7) by striking subsection (h) (as redesignated by 
     paragraph (5)) and inserting the following:
       ``(h) Data Collection.--The Commissioner for Education 
     Statistics shall--
       ``(1) annually collect data on persons receiving services 
     authorized under this subpart regarding such persons' rates 
     of secondary school

[[Page 19928]]

     graduation, entrance into postsecondary education, and 
     completion of postsecondary education;
       ``(2) not less often than once every 2 years, prepare and 
     submit a report based on the most recently available data 
     under paragraph (1) to the authorizing committees; and
       ``(3) make such report available to the public.''; and
       (8) in subsection (i) (as redesignated by paragraph (5))--
       (A) in paragraph (1), by striking ``$15,000,000 for fiscal 
     year 1999'' and all that follows through the period and 
     inserting ``such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.''; and
       (B) in paragraph (2), by striking ``$5,000,000 for fiscal 
     year 1999'' and all that follows through the period and 
     inserting ``such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.''.

     SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

       (a) Eligibility of Scholars.--Section 419F(a) (20 U.S.C. 
     1070d-36(a)) is amended by inserting ``(or a home school, 
     whether treated as a home school or a private school under 
     State law)'' after ``public or private secondary school''.
       (b) Authorization of Appropriations.--Section 419K (20 
     U.S.C. 1070d-41) is amended by striking ``$45,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.''.

     SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

       (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 
     1070e(b)(2)(B)) is amended--
       (1) by striking ``A grant'' and inserting the following:
       ``(i) In general.--Except as provided in clause (ii), a 
     grant''; and
       (2) by adding at the end the following:
       ``(ii) Increase trigger.--For any fiscal year for which the 
     amount appropriated under the authority of subsection (g) is 
     equal to or greater than $20,000,000, a grant under this 
     section shall be awarded in an amount that is not less than 
     $30,000.''.
       (b) Definition of Low-Income Student.--Paragraph (7) of 
     section 419N(b) (20 U.S.C. 1070e(b)) is amended to read as 
     follows:
       ``(7) Definition of low-income student.--For the purpose of 
     this section, the term `low-income student' means a student 
     who--
       ``(A) is eligible to receive a Federal Pell Grant for the 
     award year for which the determination is made; or
       ``(B) would otherwise be eligible to receive a Federal Pell 
     Grant for the award year for which the determination is made, 
     except that the student fails to meet the requirements of--
       ``(i) section 401(c)(1) because the student is enrolled in 
     a graduate or first professional course of study; or
       ``(ii) section 484(a)(5) because the student is in the 
     United States for a temporary purpose.''.
       (c) Authorization of Appropriations.--Section 419N(g) (20 
     U.S.C. 1070e(g)) is amended by striking ``$45,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.''.

     SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

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

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

     SEC. 421. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

       Section 428 (as amended by this Act) (20 U.S.C. 1078) is 
     further amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (X), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (Y)--

       (I) by striking clause (i) and inserting the following:

       ``(i) the lender shall determine the eligibility of a 
     borrower for a deferment described in subparagraph (M)(i) 
     based on--

       ``(I) receipt of a request for deferment from the borrower 
     and documentation of the borrower's eligibility for the 
     deferment;
       ``(II) receipt of a newly completed loan application that 
     documents the borrower's eligibility for a deferment;
       ``(III) receipt of student status information received by 
     the lender that the borrower is enrolled on at least a half-
     time basis; or
       ``(IV) the lender's confirmation of the borrower's half-
     time enrollment status through use of the National Student 
     Loan Data System, if the confirmation is requested by the 
     institution of higher education.''; and

       (II) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and

       (iii) by adding at the end the following:
       ``(Z) provides that the lender shall, at the time the 
     lender grants a deferment to a borrower who received a loan 
     under section 428H and is eligible for a deferment under 
     section 428(b)(1)(M), provide information to the borrower to 
     enable the borrower to understand the impact of 
     capitalization of interest on the borrower's loan principal 
     and total amount of interest to be paid during the life of 
     the loan.'';
       (B) in paragraph (2)(F)--
       (i) in clause (i)--

       (I) in subclause (III), by striking ``and'' after the 
     semicolon;
       (II) in subclause (IV), by striking ``and'' after the 
     semicolon; and
       (III) by adding at the end the following:
       ``(V) the effective date of the transfer;
       ``(VI) the date the current servicer will stop accepting 
     payments; and
       ``(VII) the date at which the new servicer will begin 
     accepting payments.''; and

       (C) by striking paragraph (3) and inserting the following:
       ``(3) Restrictions on inducements, payments, mailings, and 
     advertising.--A guaranty agency shall not--
       ``(A) offer, directly or indirectly, premiums, payments, 
     stock or other securities, prizes, travel, entertainment 
     expenses, tuition repayment, or other inducements to--
       ``(i) any institution of higher education or the employees 
     of an institution of higher education in order to secure 
     applicants for loans made under this part; or
       ``(ii) any lender, or any agent, employee, or independent 
     contractor of any lender or guaranty agency, in order to 
     administer or market loans made under this part (other than a 
     loan made under section 428H or a loan made as part of the 
     guaranty agency's lender-of-last-resort program pursuant to 
     section 439(q)) for the purpose of securing the designation 
     of the guaranty agency as the insurer of such loans;
       ``(B) conduct unsolicited mailings, by postal or electronic 
     means, of educational loan application forms to students 
     enrolled in secondary school or postsecondary educational 
     institutions, or to the parents of such students, except that 
     applications may be mailed, by postal or electronic means, to 
     students or borrowers who have previously received loans 
     guaranteed under this part by the guaranty agency;
       ``(C) perform, for an institution of higher education 
     participating in a program under this title, any function 
     that the institution is required to perform under part B, D, 
     or G;
       ``(D) pay, on behalf of the institution of higher 
     education, another person to perform any function that the 
     institution of higher education is required to perform under 
     part B, D, or G; or
       ``(E) conduct fraudulent or misleading advertising 
     concerning loan availability, terms, or conditions.

     It shall not be a violation of this paragraph for a guaranty 
     agency to provide technical assistance to institutions of 
     higher education comparable to the technical assistance 
     provided to institutions of higher education by the 
     Department.''; and
       (2) in subsection (c)--
       (A) in paragraph (2)(H)(i), by striking ``preclaims'' and 
     inserting ``default aversion''; and
       (B) in paragraph (3)(D)--
       (i) in clause (i), by striking ``and'' after the comma at 
     the end;
       (ii) in clause (ii), by striking the period and inserting a 
     semicolon; and
       (iii) by inserting after clause (ii) the following:
       ``(iii) the lender shall, at the time of granting a 
     borrower forbearance, provide information to the borrower to 
     enable the borrower to understand the impact of 
     capitalization of interest on the borrower's loan principal 
     and total amount of interest to be paid during the life of 
     the loan; and
       ``(iv) the lender shall contact the borrower not less often 
     than once every 180 days during the period of forbearance to 
     inform the borrower of--

       ``(I) the amount of unpaid principal and the amount of 
     interest that has accrued since the last statement of such 
     amounts provided to the borrower by the lender;
       ``(II) the fact that interest will accrue on the loan for 
     the period of forbearance;
       ``(III) the amount of interest that will be capitalized, 
     and the date on which capitalization will occur;
       ``(IV) the ability of the borrower to pay the interest that 
     has accrued before the interest is capitalized; and
       ``(V) the borrower's option to discontinue the forbearance 
     at any time.''.

     SEC. 422. FEDERAL CONSOLIDATION LOANS.

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

[[Page 19929]]

     including loan forgiveness, cancellation, and deferment;
       ``(iii) in the case of a borrower that plans to include a 
     Federal Perkins Loan under part E in the consolidation loan, 
     that once the borrower adds the borrower's Federal Perkins 
     Loan to a consolidation loan--

       ``(I) the borrower will lose all interest-free periods that 
     would have been available for such loan under part E, such as 
     the periods during which no interest accrues on the Federal 
     Perkins Loan while the borrower is enrolled in school at 
     least half-time, the grace period, and the periods during 
     which the borrower's student loan repayments are deferred 
     under section 464(c)(2); and
       ``(II) the borrower will no longer be eligible for 
     cancellation of part or all of a Federal Perkins loan under 
     section 465(a);

       ``(iv) the ability of the borrower to prepay the 
     consolidation loan, pay such loan on a shorter schedule, and 
     to change repayment plans;
       ``(v) that borrower benefit programs for a consolidation 
     loan may vary among different lenders;
       ``(vi) the consequences of default on the consolidation 
     loan; and
       ``(vii) that by applying for a consolidation loan, the 
     borrower is not obligated to agree to take the consolidation 
     loan; and''.
       (b) Conforming Amendment.--Section 455(g) (20 U.S.C. 
     1087e(g)) is amended by striking ``428C(b)(1)(F)'' and 
     inserting ``428C(b)(1)(H)''.

     SEC. 423. DEFAULT REDUCTION PROGRAM.

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

     SEC. 424. REPORTS TO CONSUMER REPORTING AGENCIES AND 
                   INSTITUTIONS OF HIGHER EDUCATION.

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

     SEC. 425. COMMON FORMS AND FORMATS.

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

     SEC. 426. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

       Section 433 (20 U.S.C. 1083) is amended by adding at the 
     end the following:
       ``(f) Borrower Information and Privacy.--Each entity 
     participating in a program under this part that is subject to 
     subtitle A of title V of the Gramm-Leach-Bliley Act (15 
     U.S.C. 6801 et seq.) shall only use, release, disclose, sell, 
     transfer, or give student information, including the name, 
     address, social security number, or amount borrowed by a 
     borrower or a borrower's parent, in accordance with the 
     provisions of such subtitle.
       ``(g) Loan Benefit Disclosures.--
       ``(1) In general.--Each eligible lender, holder, or 
     servicer of a loan made, insured, or guaranteed under this 
     part shall provide the borrower with information on the loan 
     benefit repayment options the lender, holder, or servicer 
     offer, including information on reductions in interest 
     rates--
       ``(A) by repaying the loan by automatic payroll or checking 
     account deduction;
       ``(B) by completing a program of on-time repayment; and
       ``(C) under any other interest rate reduction program.
       ``(2) Information.--Such borrower information shall 
     include--
       ``(A) any limitations on such options;
       ``(B) explicit information on the reasons a borrower may 
     lose eligibility for such an option;
       ``(C) examples of the impact the interest rate reductions 
     will have on a borrower's time for repayment and amount of 
     repayment;
       ``(D) upon the request of the borrower, the effect the 
     reductions in interest rates will have with respect to the 
     borrower's payoff amount and time for repayment; and
       ``(E) information on borrower recertification 
     requirements.''.

     SEC. 427. CONSUMER EDUCATION INFORMATION.

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

     ``SEC. 433A. CONSUMER EDUCATION INFORMATION.

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

     SEC. 428. DEFINITION OF ELIGIBLE LENDER.

       Section 435(d) (20 U.S.C. 1085(d)) is amended--
       (1) in paragraph (5)--
       (A) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (H) and (I), respectively; and
       (B) by striking subparagraphs (A) and (B) and inserting the 
     following:
       ``(A) offered, directly or indirectly, points, premiums, 
     payments (including payments for referrals and for processing 
     or finder fees), prizes, stock or other securities, travel, 
     entertainment expenses, tuition repayment, the provision of 
     information technology equipment at below-market value, 
     additional financial aid funds, or other inducements to any 
     institution of higher education or any employee of an 
     institution of higher education in order to secure applicants 
     for loans under this part;
       ``(B) conducted unsolicited mailings, by postal or 
     electronic means, of student loan application forms to 
     students enrolled in secondary school or postsecondary 
     institutions, or to parents of such students, except that 
     applications may be mailed, by postal or electronic means, to 
     students or borrowers who have previously received loans 
     under this part from such lender;
       ``(C) entered into any type of consulting arrangement, or 
     other contract to provide services to a lender, with an 
     employee who is employed in the financial aid office of an 
     institution of higher education, or who otherwise has 
     responsibilities with respect to student loans or other 
     financial aid of the institution;
       ``(D) compensated an employee who is employed in the 
     financial aid office of an institution of higher education, 
     or who otherwise has responsibilities with respect to 
     educational loans or other financial aid of the institution, 
     and who is serving on an advisory board, commission, or group 
     established by a lender or group of lenders for providing 
     such service, except that the eligible lender may reimburse 
     such employee for reasonable expenses incurred in providing 
     such service;
       ``(E) performed for an institution of higher education any 
     function that the institution of higher education is required 
     to carry out under part B, D, or G;
       ``(F) paid, on behalf of an institution of higher 
     education, another person to perform any function that the 
     institution of higher education is required to perform under 
     part B, D, or G;
       ``(G) provided payments or other benefits to a student at 
     an institution of higher education to act as the lender's 
     representative to secure applications under this title from 
     individual prospective borrowers, unless such student--
       ``(i) is also employed by the lender for other purposes; 
     and
       ``(ii) made all appropriate disclosures regarding such 
     employment;''; and
       (2) by adding at the end the following:
       ``(8) Sunset of authority for school as lender program.--
       ``(A) Sunset.--The authority provided under subsection 
     (d)(1)(E) for an institution to serve as an eligible lender, 
     and under paragraph (7) for an eligible lender to serve as a 
     trustee for an institution of higher education or an 
     organization affiliated with an institution of higher 
     education, shall expire on June 30, 2012.
       ``(B) Application to existing institutional lenders.--An 
     institution that was an eligible lender under this 
     subsection, or an eligible lender that served as a trustee 
     for an institution of higher education or an organization 
     affiliated with an institution of higher education under 
     paragraph (7), before June 30, 2012, shall--
       ``(i) not issue any new loans in such a capacity under part 
     B after June 30, 2012; and
       ``(ii) continue to carry out the institution's 
     responsibilities for any loans issued by the institution 
     under part B on or before June 30, 2012, except that, 
     beginning on June 30, 2011, the eligible institution or 
     trustee may, notwithstanding any other provision of this Act, 
     sell or otherwise dispose of such loans if all profits from 
     the divestiture are used for need-based grant programs at the 
     institution.
       ``(C) Audit requirement.--All institutions serving as an 
     eligible lender under subsection

[[Page 19930]]

     (d)(1)(E) and all eligible lenders serving as a trustee for 
     an institution of higher education or an organization 
     affiliated with an institution of higher education shall 
     annually complete and submit to the Secretary a compliance 
     audit to determine whether--
       ``(i) the institution or lender is using all proceeds from 
     special allowance payments and interest payments from 
     borrowers, interest subsidies received from the Department, 
     and any proceeds from the sale or other disposition of loans, 
     for need-based aid programs, in accordance with section 
     435(d)(2)(A)(viii);
       ``(ii) the institution or lender is using no more than a 
     reasonable portion of the proceeds described in section 
     435(d)(2)(A)(viii) for direct administrative expenses; and
       ``(iii) the institution or lender is ensuring that the 
     proceeds described in section 435(d)(2)(A)(viii) are being 
     used to supplement, and not to supplant, non-Federal funds 
     that would otherwise be used for need-based grant 
     programs.''.

     SEC. 429. DISCHARGE AND CANCELLATION RIGHTS IN CASES OF 
                   DISABILITY.

       (a) FFEL and Direct Loans.--Section 437(a) (20 U.S.C. 1087) 
     is amended--
       (1) by inserting ``, or if a student borrower who has 
     received such a loan is unable to engage in any substantial 
     gainful activity by reason of any medically determinable 
     physical or mental impairment that can be expected to result 
     in death, has lasted for a continuous period of not less than 
     60 months, or can be expected to last for a continuous period 
     of not less than 60 months'' after ``of the Secretary),''; 
     and
       (2) by adding at the end the following: ``The Secretary may 
     develop such safeguards as the Secretary determines necessary 
     to prevent fraud and abuse in the discharge of liability 
     under this subsection. Notwithstanding any other provision of 
     this subsection, the Secretary may promulgate regulations to 
     resume collection on loans discharged under this subsection 
     in any case in which--
       ``(1) a borrower received a discharge of liability under 
     this subsection and after the discharge the borrower--
       ``(A) receives a loan made, insured or guaranteed under 
     this title; or
       ``(B) has earned income in excess of the poverty line; or
       ``(2) the Secretary determines necessary.''.
       (b) Perkins.--Section 464(c) (20 U.S.C. 1087dd(c)) is 
     amended--
       (1) in paragraph (1)(F)--
       (A) by striking ``or if he'' and inserting ``if the 
     borrower''; and
       (B) by inserting ``, or if the borrower is unable to engage 
     in any substantial gainful activity by reason of any 
     medically determinable physical or mental impairment that can 
     be expected to result in death, has lasted for a continuous 
     period of not less than 60 months, or can be expected to last 
     for a continuous period of not less than 60 months'' after 
     ``the Secretary''; and
       (2) by adding at the end the following:
       ``(8) The Secretary may develop such additional safeguards 
     as the Secretary determines necessary to prevent fraud and 
     abuse in the cancellation of liability under paragraph 
     (1)(F). Notwithstanding paragraph (1)(F), the Secretary may 
     promulgate regulations to resume collection on loans 
     cancelled under paragraph (1)(F) in any case in which--
       ``(A) a borrower received a cancellation of liability under 
     paragraph (1)(F) and after the cancellation the borrower--
       ``(i) receives a loan made, insured or guaranteed under 
     this title; or
       ``(ii) has earned income in excess of the poverty line; or
       ``(B) the Secretary determines necessary.''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on July 1, 2008.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

     SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

       Section 441(b) (42 U.S.C. 2751(b)) is amended by striking 
     ``$1,000,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2008 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 442. ALLOWANCE FOR BOOKS AND SUPPLIES.

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

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

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

     SEC. 444. JOB LOCATION AND DEVELOPMENT PROGRAMS.

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

     SEC. 445. WORK COLLEGES.

       Section 448 (42 U.S.C. 2756b) is amended--
       (1) in subsection (a), by striking ``work-learning'' and 
     inserting ``work-learning-service'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``under subsection (f)'' 
     and inserting ``for this section under section 441(b)''; and
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``pursuant to subsection (f)'' and inserting ``for this 
     section under section 441(b)'';
       (ii) in subparagraph (A), by striking ``work-learning 
     program'' and inserting ``comprehensive work-learning-service 
     program'';
       (iii) by redesignating subparagraphs (C) through (F) as 
     subparagraphs (D) through (G), respectively;
       (iv) by inserting after subparagraph (B) the following:
       ``(C) support existing and new model student volunteer 
     community service projects associated with local institutions 
     of higher education, such as operating drop-in resource 
     centers that are staffed by students and that link people in 
     need with the resources and opportunities necessary to become 
     self-sufficient; and'';
       (v) in subparagraph (E) (as redesignated by clause (iii)), 
     by striking ``work-learning'' each place the term occurs and 
     inserting ``work-learning-service''; and
       (vi) in subparagraph (F) (as redesignated by clause (iii)), 
     by striking ``work service learning'' and inserting ``work-
     learning-service'';
       (3) in subsection (c), by striking ``by subsection (f) to 
     use funds under subsection (b)(1)'' and inserting ``for this 
     section under section 441(b) or to use funds under subsection 
     (b)(1),'';
       (4) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting ``4-year, degree-
     granting'' after ``nonprofit'';
       (ii) in subparagraph (B), by striking ``work-learning'' and 
     inserting ``work-learning-service'';
       (iii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) requires all resident students, including at least 
     \1/2\ of all resident students who are enrolled on a full-
     time basis, to participate in a comprehensive work-learning-
     service program for not less than 5 hours each week, or not 
     less than 80 hours during each period of enrollment except 
     summer school, unless the student is engaged in a study 
     abroad or externship program that is organized or approved by 
     the institution; and''; and
       (iv) in subparagraph (D), by striking ``work-learning'' and 
     inserting ``work-learning-service''; and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) the term `comprehensive work-learning-service 
     program' means a student work-learning-service program that--
       ``(A) is an integral and stated part of the institution's 
     educational philosophy and program;
       ``(B) requires participation of all resident students for 
     enrollment and graduation;
       ``(C) includes learning objectives, evaluation, and a 
     record of work performance as part of the student's college 
     record;
       ``(D) provides programmatic leadership by college personnel 
     at levels comparable to traditional academic programs;
       ``(E) recognizes the educational role of work-learning-
     service supervisors; and
       ``(F) includes consequences for nonperformance or failure 
     in the work-learning-service program similar to the 
     consequences for failure in the regular academic program.''; 
     and
       (5) by striking subsection (f).

                     PART D--FEDERAL PERKINS LOANS

     SEC. 451. PROGRAM AUTHORITY.

       Section 461(b)(1) (20 U.S.C. 1087aa(b)(1)) is amended by 
     striking ``$250,000,000 for fiscal year 1999'' and all that 
     follows through the period and inserting ``such sums as may 
     be necessary for each of the fiscal years 2008 through 
     2012.''.

     SEC. 452. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.

       Section 465(a) (20 U.S.C. 1087ee(a)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (B), by striking ``Head Start Act 
     which'' and inserting ``Head Start Act, or in a 
     prekindergarten or child care program that is licensed or 
     regulated by the State, that'';
       (B) in subparagraph (H), by striking ``or'' after the 
     semicolon;
       (C) in subparagraph (I), by striking the period and 
     inserting a semicolon; and
       (D) by inserting before the matter following subparagraph 
     (I) (as amended by subparagraph (C)) the following:
       ``(J) as a full-time faculty member at a Tribal College or 
     University, as that term is defined in section 316;
       ``(K) as a librarian, if the librarian has a master's 
     degree in library science and is employed in--
       ``(i) an elementary school or secondary school that is 
     eligible for assistance under title I of the Elementary and 
     Secondary Education Act of 1965; or
       ``(ii) a public library that serves a geographic area that 
     contains 1 or more schools eligible for assistance under 
     title I of the Elementary and Secondary Education Act of 
     1965; or
       ``(L) as a full-time speech language therapist, if the 
     therapist has a master's degree and is working exclusively 
     with schools that are eligible for assistance under title I 
     of the Elementary and Secondary Education Act of 1965.''; and
       (2) in paragraph (3)(A)--
       (A) in clause (i)--
       (i) by inserting ``(D),'' after ``(C),''; and
       (ii) by striking ``or (I)'' and inserting ``(I), (J), (K), 
     or (L)'';

[[Page 19931]]

       (B) in clause (ii), by inserting ``or'' after the 
     semicolon;
       (C) by striking clause (iii); and
       (D) by redesignating clause (iv) as clause (iii).

                         PART E--NEED ANALYSIS

     SEC. 461. COST OF ATTENDANCE.

       (a) Amendments.--Section 472(3) (20 U.S.C. 1087kk(3)) is 
     amended--
       (1) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B), as amended by 
     paragraph (1), the following:
       ``(C) for students who live in housing located on a 
     military base or for which a basic allowance is provided 
     under section 403(b) of title 37, United States Code, shall 
     be an allowance based on the expenses reasonably incurred by 
     such students for board but not for room; and''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on July 1, 2008.

     SEC. 462. DEFINITIONS.

       (a) Amendment.--Section 480(b)(6) (20 U.S.C. 1087vv(b)(6)) 
     is amended by inserting ``, except that the value of on-base 
     military housing or the value of basic allowance for housing 
     determined under section 403(b) of title 37, United States 
     Code, received by the parents, in the case of a dependent 
     student, or the student or student's spouse, in the case of 
     an independent student, shall be excluded'' before the 
     semicolon.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on July 1, 2008.

       PART F--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

     SEC. 471. DEFINITIONS.

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

     SEC. 472. COMPLIANCE CALENDAR.

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

     SEC. 473. FORMS AND REGULATIONS.

       Section 483 (20 U.S.C. 1090) is amended--
       (1) by striking subsections (a) and (b) and inserting the 
     following:
       ``(a) Common Financial Aid Form Development and 
     Processing.--
       ``(1) In general.--
       ``(A) Common forms.--The Secretary, in cooperation with 
     representatives of agencies and organizations involved in 
     student financial assistance, shall produce, distribute, and 
     process free of charge common financial reporting forms as 
     described in this subsection to be used to determine the need 
     and eligibility of a student for financial assistance under 
     parts A through E of this title (other than under subpart 4 
     of part A). The forms shall be made available to applicants 
     in both paper and electronic formats.
       ``(B) FAFSA.--The common financial reporting forms 
     described in this subsection (excluding the form described in 
     paragraph (2)(B)), shall be referred to collectively as the 
     `Free Application for Federal Student Aid', or `FAFSA'.
       ``(2) Paper format.--
       ``(A) In general.--The Secretary shall encourage applicants 
     to file the electronic versions of the forms described in 
     paragraph (3), but shall develop, make available, and 
     process--
       ``(i) a paper version of EZ FAFSA, as described in 
     subparagraph (B); and
       ``(ii) a paper version of the other forms described in this 
     subsection, in accordance with subparagraph (C), for any 
     applicant who does not meet the requirements of or does not 
     wish to use the process described in subparagraph (B).
       ``(B) EZ fafsa.--
       ``(i) In general.--The Secretary shall develop and use, 
     after appropriate field testing, a simplified paper 
     application form for applicants meeting the requirements of 
     section 479(c), which form shall be referred to as the `EZ 
     FAFSA'.
       ``(ii) Required federal data elements.--The Secretary shall 
     include on the EZ FAFSA only the data elements required to 
     determine student eligibility and whether the applicant meets 
     the requirements of section 479(c).
       ``(iii) Required state data elements.--The Secretary shall 
     include on the EZ FAFSA such data items as may be necessary 
     to award State financial assistance, as provided under 
     paragraph (5), except the Secretary shall not include a 
     State's data if that State does not permit its applicants for 
     State assistance to use the EZ FAFSA.
       ``(iv) Free availability and data distribution.--The 
     provisions of paragraphs (6) and (10) shall apply to the EZ 
     FAFSA.
       ``(C) Phase-out of full paper fafsa.--
       ``(i) Phase-out of printing of full paper fafsa.--At such 
     time as the Secretary determines that it is not cost-
     effective to print the full paper version of FAFSA, the 
     Secretary shall--

       ``(I) phase out the printing of the full paper version of 
     FAFSA;
       ``(II) maintain on the Internet easily accessible, 
     downloadable formats of the full paper version of FAFSA; and
       ``(III) provide a printed copy of the full paper version of 
     FAFSA upon request.

       ``(ii) Use of savings.--The Secretary shall utilize any 
     savings realized by phasing out the printing of the full 
     paper version of FAFSA and moving applicants to the 
     electronic versions of FAFSA, to improve access to the 
     electronic versions for applicants meeting the requirements 
     of section 479(c).
       ``(3) Electronic versions.--
       ``(A) In general.--The Secretary shall produce, make 
     available through a broadly available website, and process 
     electronic versions of the FAFSA and the EZ FAFSA.
       ``(B) Minimum questions.--The Secretary shall use all 
     available technology to ensure that a student using an 
     electronic version of the FAFSA under this paragraph answers 
     only the minimum number of questions necessary.
       ``(C) Reduced requirements.--The Secretary shall enable 
     applicants who meet the requirements of subsection (b) or (c) 
     of section 479 to provide information on the electronic 
     version of the FAFSA only for the data elements required to 
     determine student eligibility and whether the applicant meets 
     the requirements of subsection (b) or (c) of section 479.
       ``(D) State data.--The Secretary shall include on the 
     electronic version of the FAFSA the questions needed to 
     determine whether the applicant is eligible for State 
     financial assistance, as provided under paragraph (5), except 
     that the Secretary shall not--
       ``(i) require applicants to complete data required by any 
     State other than the applicant's State of residence; and
       ``(ii) include a State's data if such State does not permit 
     its applicants for State assistance to use the electronic 
     version of the FAFSA described in this paragraph.
       ``(E) Free availability and data distribution.--The 
     provisions of paragraphs (6) and (10) shall apply to the 
     electronic version of the FAFSA.
       ``(F) Use of forms.--Nothing in this subsection shall be 
     construed to prohibit the use of the electronic versions of 
     the forms developed by the Secretary pursuant to this 
     paragraph by an eligible institution, eligible lender, a 
     guaranty agency, a State grant agency, a private computer 
     software provider, a consortium of such entities, or such 
     other entity as the Secretary may designate. Data collected 
     by the electronic versions of such forms shall be used only 
     for the application, award, and administration of aid awarded 
     under this title, State aid, or aid awarded by eligible 
     institutions or such entities as the Secretary may designate. 
     No data collected by such electronic versions of the forms 
     shall be used for making final aid awards under this title 
     until such data have been processed by the Secretary or a 
     contractor or designee of the Secretary, except as may be 
     permitted under this title.
       ``(G) Privacy.--The Secretary shall ensure that data 
     collection under this paragraph complies with section 552a of 
     title 5, United States Code, and that any entity using an 
     electronic version of a form developed by the Secretary under 
     this paragraph shall maintain reasonable and appropriate 
     administrative, technical, and physical safeguards to ensure 
     the integrity and confidentiality of the information, and to 
     protect against security threats, or unauthorized uses or 
     disclosures of the information provided on the electronic 
     version of the form.
       ``(H) Signature.--Notwithstanding any other provision of 
     this Act, the Secretary may permit an electronic version of a 
     form developed under this paragraph to be submitted without a 
     signature, if a signature is subsequently submitted by the 
     applicant or if the applicant uses a personal identification 
     number provided by the Secretary under subparagraph (I).
       ``(I) Personal identification numbers authorized.--The 
     Secretary is authorized to assign to an applicant a personal 
     identification number--
       ``(i) to enable the applicant to use such number as a 
     signature for purposes of completing an electronic version of 
     a form developed under this paragraph; and
       ``(ii) for any purpose determined by the Secretary to 
     enable the Secretary to carry out this title.
       ``(J) Personal identification number improvement.--Not 
     later than 180 days after the date of enactment of the Higher 
     Education Amendments of 2007, the Secretary shall implement a 
     real-time data match between the Social Security 
     Administration and the Department to minimize the time 
     required for an applicant to obtain a personal identification 
     number when applying for aid under this title through an 
     electronic version of a form developed under this paragraph.
       ``(4) Streamlined reapplication process.--
       ``(A) In general.--The Secretary shall develop streamlined 
     paper and electronic reapplication forms and processes for an 
     applicant who applies for financial assistance under this

[[Page 19932]]

     title in the next succeeding academic year subsequent to an 
     academic year for which such applicant applied for financial 
     assistance under this title.
       ``(B) Updating of data elements.--The Secretary shall 
     determine, in cooperation with States, institutions of higher 
     education, agencies, and organizations involved in student 
     financial assistance, the data elements that may be 
     transferred from the previous academic year's application and 
     those data elements that shall be updated.
       ``(C) Reduced data authorized.--Nothing in this title shall 
     be construed as limiting the authority of the Secretary to 
     reduce the number of data elements required of reapplicants.
       ``(D) Zero family contribution.--Applicants determined to 
     have a zero family contribution pursuant to section 479(c) 
     shall not be required to provide any financial data in a 
     reapplication form, except data that are necessary to 
     determine eligibility under such section.
       ``(5) State requirements.--
       ``(A) In general.--Except as provided in paragraphs 
     (2)(B)(iii), (3)(D), and (4)(B), the Secretary shall include 
     on the forms developed under this subsection, such State-
     specific data items as the Secretary determines are necessary 
     to meet State requirements for need-based State aid. Such 
     items shall be selected in consultation with State agencies 
     in order to assist in the awarding of State financial 
     assistance in accordance with the terms of this subsection. 
     The number of such data items shall not be less than the 
     number included on the common financial reporting form for 
     the 2005-2006 award year unless a State notifies the 
     Secretary that the State no longer requires those data items 
     for the distribution of State need-based aid.
       ``(B) Annual review.--The Secretary shall conduct an annual 
     review to determine--
       ``(i) which data items each State requires to award need-
     based State aid; and
       ``(ii) if the State will permit an applicant to file a form 
     described in paragraph (2)(B) or (3)(C).
       ``(C) Use of simplified application forms encouraged.--The 
     Secretary shall encourage States to take such steps as are 
     necessary to encourage the use of simplified forms under this 
     subsection, including those forms described in paragraphs 
     (2)(B) and (3)(C), for applicants who meet the requirements 
     of subsection (b) or (c) of section 479.
       ``(D) Consequences if state does not accept simplified 
     forms.--If a State does not permit an applicant to file a 
     form described in paragraph (2)(B) or (3)(C) for purposes of 
     determining eligibility for State need-based financial aid, 
     the Secretary may determine that State-specific questions for 
     such State will not be included on a form described in 
     paragraph (2)(B) or (3)(B). If the Secretary makes such 
     determination, the Secretary shall advise the State of the 
     Secretary's determination.
       ``(E) Lack of state response to request for information.--
     If a State does not respond to the Secretary's request for 
     information under subparagraph (B), the Secretary shall--
       ``(i) permit residents of that State to complete simplified 
     forms under paragraphs (2)(B) and (3)(B); and
       ``(ii) not require any resident of such State to complete 
     any data items previously required by that State under this 
     section.
       ``(F) Restriction.--The Secretary shall not require 
     applicants to complete any financial or non-financial data 
     items that are not required--
       ``(i) by the applicant's State; or
       ``(ii) by the Secretary.
       ``(6) Charges to students and parents for use of forms 
     prohibited.--The need and eligibility of a student for 
     financial assistance under parts A through E (other than 
     under subpart 4 of part A) may be determined only by using a 
     form developed by the Secretary under this subsection. Such 
     forms shall be produced, distributed, and processed by the 
     Secretary, and no parent or student shall be charged a fee by 
     the Secretary, a contractor, a third-party servicer or 
     private software provider, or any other public or private 
     entity for the collection, processing, or delivery of 
     financial aid through the use of such forms. No data 
     collected on a paper or electronic version of a form 
     developed under this subsection, or other document that was 
     created to replace, or used to complete, such a form, and for 
     which a fee was paid, shall be used.
       ``(7) Restrictions on use of pin.--No person, commercial 
     entity, or other entity shall request, obtain, or utilize an 
     applicant's personal identification number assigned under 
     paragraph (3)(I) for purposes of submitting a form developed 
     under this subsection on an applicant's behalf.
       ``(8) Application processing cycle.--The Secretary shall 
     enable students to submit forms developed under this 
     subsection and initiate the processing of such forms under 
     this subsection, as early as practicable prior to January 1 
     of the student's planned year of enrollment.
       ``(9) Early estimates of expected family contributions.--
     The Secretary shall permit an applicant to complete a form 
     described in this subsection in the years prior to enrollment 
     in order to obtain from the Secretary a nonbinding estimate 
     of the applicant's expected family contribution, computed in 
     accordance with part F. Such applicant shall be permitted to 
     update information submitted on a form described in this 
     subsection using the process required under paragraph (4).
       ``(10) Distribution of data.--Institutions of higher 
     education, guaranty agencies, and States shall receive, 
     without charge, the data collected by the Secretary using a 
     form developed under this subsection for the purposes of 
     processing loan applications and determining need and 
     eligibility for institutional and State financial aid awards. 
     Entities designated by institutions of higher education, 
     guaranty agencies, or States to receive such data shall be 
     subject to all the requirements of this section, unless such 
     requirements are waived by the Secretary.
       ``(11) Third party servicers and private software 
     providers.--To the extent practicable and in a timely manner, 
     the Secretary shall provide, to private organizations and 
     consortia that develop software used by institutions of 
     higher education for the administration of funds under this 
     title, all the necessary specifications that the 
     organizations and consortia must meet for the software the 
     organizations and consortia develop, produce, and distribute 
     (including any diskette, modem, or network communications) 
     which are so used. The specifications shall contain record 
     layouts for required data. The Secretary shall develop in 
     advance of each processing cycle an annual schedule for 
     providing such specifications. The Secretary, to the extent 
     practicable, shall use multiple means of providing such 
     specifications, including conferences and other meetings, 
     outreach, and technical support mechanisms (such as training 
     and printed reference materials). The Secretary shall, from 
     time to time, solicit from such organizations and consortia 
     means of improving the support provided by the Secretary.
       ``(12) Parent's social security number and birth date.--The 
     Secretary is authorized to include space on the forms 
     developed under this subsection for the social security 
     number and birth date of parents of dependent students 
     seeking financial assistance under this title.'';
       (2) by redesignating subsections (c) through (e) (as 
     amended by section 101(b)(11)) as subsections (b) through 
     (d), respectively;
       (3) in subsection (c) (as redesignated by paragraph (2)), 
     by striking ``that is authorized'' and all that follows 
     through the period at the end and inserting ``or other 
     appropriate provider of technical assistance and information 
     on postsecondary educational services that is authorized 
     under section 663(a) of the Individuals with Disabilities 
     Education Act. Not later than 2 years after the date of 
     enactment of the Higher Education Amendments of 2007, the 
     Secretary shall test and implement, to the extent 
     practicable, a toll-free telephone based system to permit 
     applicants who meet the requirements of 479(c) to submit an 
     application over such system.'';
       (4) by striking subsection (d) (as redesignated by 
     paragraph (2)) and inserting the following:
       ``(d) Assistance in Preparation of Financial Aid 
     Application.--
       ``(1) Preparation authorized.--Notwithstanding any 
     provision of this Act, an applicant may use a preparer for 
     consultative or preparation services for the completion of a 
     form developed under subsection (a) if the preparer satisfies 
     the requirements of this subsection.
       ``(2) Preparer identification required.--If an applicant 
     uses a preparer for consultative or preparation services for 
     the completion of a form developed under subsection (a), the 
     preparer shall include the name, signature, address or 
     employer's address, social security number or employer 
     identification number, and organizational affiliation of the 
     preparer on the applicant's form.
       ``(3) Additional requirements.--A preparer that provides 
     consultative or preparation services pursuant to this 
     subsection shall--
       ``(A) clearly inform each individual upon initial contact, 
     including contact through the Internet or by telephone, that 
     the FAFSA and EZ FAFSA may be completed for free via paper or 
     electronic versions of the forms that are provided by the 
     Secretary;
       ``(B) include in any advertising clear and conspicuous 
     information that the FAFSA and EZ FAFSA may be completed for 
     free via paper or electronic versions of the forms that are 
     provided by the Secretary;
       ``(C) if advertising or providing any information on a 
     website, or if providing services through a website, include 
     on the website a link to the website described in subsection 
     (a)(3) that provides the electronic versions of the forms 
     developed under subsection (a);
       ``(D) refrain from producing or disseminating any form 
     other than the forms developed by the Secretary under 
     subsection (a); and
       ``(E) not charge any fee to any individual seeking services 
     who meets the requirements of subsection (b) or (c) of 
     section 479.
       ``(4) Special rule.--Nothing in this Act shall be construed 
     to limit preparers of the financial reporting forms required 
     to be made under this title that meet the requirements of 
     this subsection from collecting source information from a 
     student or parent, including Internal Revenue Service tax 
     forms, in providing consultative and preparation services in 
     completing the forms.''; and
       (5) by adding at the end the following:
       ``(e) Early Application and Award Demonstration Program.--
       ``(1) Purpose.--The purpose of the demonstration program 
     implemented under this subsection is to determine the 
     feasibility of implementing a comprehensive early application 
     and notification system for all dependent students and to 
     measure the benefits and costs of such a system.
       ``(2) Program authorized.--Not later than 2 years after the 
     date of enactment of the Higher Education Amendments of 2007, 
     the Secretary shall implement an early application 
     demonstration program enabling dependent students who wish to 
     participate in the program--
       ``(A) to complete an application under this subsection 
     during the academic year that is 2

[[Page 19933]]

     years prior to the year such students plan to enroll in an 
     institution of higher education; and
       ``(B) based on the application described in subparagraph 
     (A), to obtain, not later than 1 year prior to the year of 
     the students' planned enrollment, information on eligibility 
     for Federal Pell Grants, Federal student loans under this 
     title, and State and institutional financial aid for the 
     student's first year of enrollment in an the institution of 
     higher education.
       ``(3) Early application and award.--For all dependent 
     students selected for participation in the demonstration 
     program who submit a completed FAFSA, or, as appropriate, an 
     EZ FAFSA, 2 years prior to the year such students plan to 
     enroll in an institution of higher education, the Secretary 
     shall, not later than 1 year prior to the year of such 
     planned enrollment--
       ``(A) provide each student who meets the requirements under 
     section 479(c) with a determination of such student's--
       ``(i) expected family contribution for the first year of 
     the student's enrollment in an institution of higher 
     education; and
       ``(ii) Federal Pell Grant award for the first such year, 
     based on the maximum Federal Pell Grant award at the time of 
     application;
       ``(B) provide each student who does not meet the 
     requirements under section 479(c) with an estimate of such 
     student's--
       ``(i) expected family contribution for the first year of 
     the student's planned enrollment; and
       ``(ii) Federal Pell Grant award for the first such year, 
     based on the maximum Federal Pell Grant award at the time of 
     application; and
       ``(C) remind the students of the need to update the 
     students' information during the calendar year of enrollment 
     using the expedited reapplication process provided for in 
     subsection (a)(4).
       ``(4) Participants.--The Secretary shall include, as 
     participants in the demonstration program--
       ``(A) States selected through the application process 
     described in paragraph (5);
       ``(B) institutions of higher education within the selected 
     States that are interested in participating in the 
     demonstration program, and that can make estimates or 
     commitments of institutional student financial aid, as 
     appropriate, to students the year before the students' 
     planned enrollment date; and
       ``(C) secondary schools within the selected States that are 
     interested in participating in the demonstration program, and 
     can commit resources to--
       ``(i) advertising the availability of the program;
       ``(ii) identifying students who might be interested in 
     participating in the program;
       ``(iii) encouraging such students to apply; and
       ``(iv) participating in the evaluation of the program.
       ``(5) Applications.--States that are interested in 
     participating in the demonstration program shall submit an 
     application, to the Secretary at such time, in such form, and 
     containing such information as the Secretary shall require. 
     The application shall include--
       ``(A) information on the amount of the State's need-based 
     student financial assistance available, and the eligibility 
     criteria for receiving such assistance;
       ``(B) a commitment to make, not later than the year before 
     the dependent students participating in the demonstration 
     program plan to enroll in an institution of higher 
     education--
       ``(i) determinations of State financial aid awards to 
     dependent students participating in the program who meet the 
     requirements of section 479(c); and
       ``(ii) estimates of State financial aid awards to other 
     dependent students participating in the program;
       ``(C) a plan for recruiting institutions of higher 
     education and secondary schools with different demographic 
     characteristics to participate in the program;
       ``(D) a plan for selecting institutions of higher education 
     and secondary schools to participate in the program that--
       ``(i) demonstrate a commitment to encouraging students to 
     submit a FAFSA, or, as appropriate, an EZ FAFSA, 2 years 
     before the students' planned date of enrollment in an 
     institution of higher education;
       ``(ii) serve different populations of students;
       ``(iii) in the case of institutions of higher education--

       ``(I) to the extent possible, are of varying types and 
     control; and
       ``(II) commit to making, not later than the year prior to 
     the year that dependent students participating in the 
     demonstration program plan to enroll in the institution--

       ``(aa) institutional awards to participating dependent 
     students who meet the requirements of section 479(c);
       ``(bb) estimates of institutional awards to other 
     participating dependent students; and
       ``(cc) expected or tentative awards of grants or other 
     financial aid available under this title (including 
     supplemental grants under subpart 3 of part A), for all 
     participating dependent students, along with information on 
     State awards, as provided to the institution by the State;
       ``(E) a commitment to participate in the evaluation 
     conducted by the Secretary; and
       ``(F) such other information as the Secretary may require.
       ``(6) Special provisions.--
       ``(A) Discretion of student financial aid administrators.--
     A financial aid administrator at an institution of higher 
     education participating in a demonstration program under this 
     subsection may use the discretion provided under section 479A 
     as necessary in awarding financial aid to students 
     participating in the demonstration program.
       ``(B) Waivers.--The Secretary is authorized to waive, for 
     an institution participating in the demonstration program, 
     any requirements under the title, or regulations prescribed 
     under this title, that would make the demonstration program 
     unworkable, except that the Secretary shall not waive any 
     provisions with respect to the maximum award amounts for 
     grants and loans under this title.
       ``(7) Outreach.--The Secretary shall make appropriate 
     efforts in order to notify States, institutions of higher 
     education, and secondary schools of the demonstration 
     program.
       ``(8) Evaluation.--The Secretary shall conduct a rigorous 
     evaluation of the demonstration program to measure the 
     program's benefits and adverse effects, as the benefits and 
     effects relate to the purpose of the program described in 
     paragraph (1). In conducting the evaluation, the Secretary 
     shall--
       ``(A) identify whether receiving financial aid awards or 
     estimates, as applicable, 1 year prior to the year in which 
     the student plans to enroll in an institution of higher 
     education, has a positive impact on the higher education 
     aspirations and plans of such student;
       ``(B) measure the extent to which using a student's income 
     information from the year that is 2 years prior to the 
     student's planned enrollment date had an impact on the 
     ability of States and institutions to make financial aid 
     awards and commitments;
       ``(C) determine what operational changes would be required 
     to implement the program on a larger scale;
       ``(D) identify any changes to Federal law that would be 
     necessary to implement the program on a permanent basis; and
       ``(E) identify the benefits and adverse effects of 
     providing early awards or estimates on program costs, program 
     operations, program integrity, award amounts, distribution, 
     and delivery of aid.
       ``(9) Consultation.--The Secretary shall consult, as 
     appropriate, with the Advisory Committee on Student Financial 
     Assistance established under section 491 on the design, 
     implementation, and evaluation of the demonstration program.
       ``(f) Use of IRS Data and Reduced Income and Asset 
     Information to Determine Eligibility for Student Financial 
     Aid.--
       ``(1) Formation of study group.--Not later than 180 days 
     after the date of enactment of the Higher Education 
     Amendments of 2007, the Comptroller General of the United 
     States and the Secretary of Education shall convene a study 
     group whose members shall include the Secretary of the 
     Treasury, the Director of the Office of Management and 
     Budget, the Director of the Congressional Budget Office, and 
     such other individuals as the Comptroller General and 
     Secretary of Education may designate.
       ``(2) Study required.--The Comptroller General and the 
     Secretary, in consultation with the study group convened 
     under paragraph (1), shall design and conduct a study to 
     identify and evaluate the means of simplifying the process of 
     applying for Federal financial aid available under this 
     title. The study shall focus on developing alternative 
     approaches for calculating the expected family contribution 
     that use substantially less income and asset data than the 
     methodology currently used, as of the time of the study, for 
     determining the expected family contribution.
       ``(3) Objectives of study.--The objectives of the study 
     required under paragraph (2) are--
       ``(A) to shorten the FAFSA and make it easier and less 
     time-consuming to complete, thereby increasing higher 
     education access for low-income students;
       ``(B) to examine the feasibility, and evaluate the costs 
     and benefits, of using income data from the Internal Revenue 
     Service to pre-populate the electronic version of the FAFSA;
       ``(C) to determine ways in which to provide reliable 
     information on the amount of Federal grant aid and financial 
     assistance a student can expect to receive, assuming constant 
     income, 2 to 3 years before the student's enrollment; and
       ``(D) to simplify the process for determining eligibility 
     for student financial aid without causing significant 
     redistribution of Federal grants and subsidized loans under 
     this title.
       ``(4) Required subjects of study.--The study required under 
     paragraph (2) shall consider--
       ``(A) how the expected family contribution of a student 
     could be calculated using substantially less income and asset 
     information than the approach currently used, as of the time 
     of the study, to calculate the expected family contribution 
     without causing significant redistribution of Federal grants 
     and subsidized loans under this title, State aid, or 
     institutional aid, or change in the composition of the group 
     of recipients of such aid, which alternative approaches for 
     calculating the expected family contribution shall, to the 
     extent practicable--
       ``(i) rely mainly, in the case of students and parents who 
     file income tax returns, on information available on the 
     1040, 1040EZ, and 1040A; and
       ``(ii) include formulas for adjusting income or asset 
     information to produce similar results to the existing 
     approach with less data;
       ``(B) how the Internal Revenue Service can provide income 
     and other data needed to compute an expected family 
     contribution for taxpayers and dependents of taxpayers to the 
     Secretary of Education, and when in the application cycle the 
     data can be made available;
       ``(C) whether data provided by the Internal Revenue could 
     be used to--

[[Page 19934]]

       ``(i) prepopulate the electronic version of the FAFSA with 
     student and parent taxpayer data; or
       ``(ii) generate an expected family contribution without 
     additional action on the part of the student and taxpayer;
       ``(D) the extent to which the use of income data from 2 
     years prior to a student's planned enrollment date would 
     change the expected family contribution computed in 
     accordance with part F, and potential adjustments to the need 
     analysis formula that would minimize the change;
       ``(E) the extent to which States and institutions would 
     accept the data provided by the Internal Revenue Service to 
     prepopulate the electronic version of the FAFSA in 
     determining the distribution of State and institutional 
     student financial aid funds;
       ``(F) the changes to the electronic version of the FAFSA 
     and verification processes that would be needed or could be 
     made if Internal Revenue Service data were used to 
     prepopulate such electronic version;
       ``(G) the data elements currently collected, as of the time 
     of the study, on the FAFSA that are needed to determine 
     eligibility for student aid, or to administer Federal student 
     financial aid programs, but are not needed to compute an 
     expected family contribution, such as whether information 
     regarding the student's citizenship or permanent residency 
     status, registration for selective service, or driver's 
     license number could be reduced without adverse effects;
       ``(H) additional steps that can be taken to simplify the 
     financial aid application process for students who (or, in 
     the case of dependent students, whose parents) are not 
     required to file an income tax return for the prior taxable 
     year;
       ``(I) information on the State need for and usage of the 
     full array of income, asset, and other information currently 
     collected, as of the time of the study, on the FAFSA, 
     including analyses of--
       ``(i) what data are currently used by States to determine 
     eligibility for State student financial aid, and whether the 
     data are used for merit or need-based aid;
       ``(ii) the extent to which the full array of income and 
     asset information currently collected on the FAFSA play an 
     important role in the awarding of need-based State financial 
     aid, and whether the State could use income and asset 
     information that was more limited to support determinations 
     of eligibility for such State aid programs;
       ``(iii) whether data are required by State law, State 
     regulations, or policy directives;
       ``(iv) what State official has the authority to advise the 
     Department on what the State requires to calculate need-based 
     State student financial aid;
       ``(v) the extent to which any State-specific information 
     requirements could be met by completion of a State 
     application linked to the electronic version of the FAFSA; 
     and
       ``(vi) whether the State can use, as of the time of the 
     study, or could use, a student's expected family contribution 
     based on data from 2 years prior to the student's planned 
     enrollment date and a calculation with reduced data elements 
     and, if not, what additional information would be needed or 
     what changes would be required; and
       ``(J) information on institutional needs, including the 
     extent to which institutions of higher education are already 
     using supplemental forms to collect additional data from 
     students and their families to determine eligibility for 
     institutional funds.
       ``(5) Use of data from the internal revenue service to 
     prepopulate fafsa forms.--After the study required under this 
     subsection has been completed, the Secretary may use Internal 
     Revenue Service data to prepopulate the electronic version of 
     the FAFSA if the Secretary, in a joint decision with the 
     Secretary of Treasury, determines that such use will not 
     significantly negatively impact students, institutions of 
     higher education, States, or the Federal Government based on 
     each of the following criteria:
       ``(A) Program costs.
       ``(B) Redistributive effects on students.
       ``(C) Accuracy of aid determinations.
       ``(D) Reduction of burden to the FAFSA filers.
       ``(E) Whether all States and institutions that currently 
     accept the Federal aid formula accept the use of data from 2 
     years prior to the date of a student's planned enrollment in 
     an institution of higher education to award Federal, State, 
     and institutional aid, and as a result will not require 
     students to complete any additional forms to receive this 
     aid.
       ``(6) Consultation.--The Secretary shall consult with the 
     Advisory Committee on Student Financial Assistance 
     established under section 491 as appropriate in carrying out 
     this subsection.
       ``(7) Report.--Not later than 18 months after the date of 
     enactment of the Higher Education Amendments of 2007, the 
     Comptroller General and the Secretary shall prepare and 
     submit a report on the results of the study required under 
     this subsection to the authorizing committees.''.

     SEC. 474. STUDENT ELIGIBILITY.

       (a) Amendments.--Section 484 (20 U.S.C. 1091) is amended--
       (1) in subsection (d), by adding at the end the following:
       ``(4) The student shall be determined by the institution of 
     higher education as having the ability to benefit from the 
     education or training offered by the institution of higher 
     education, upon satisfactory completion of 6 credit hours or 
     the equivalent coursework that are applicable toward a degree 
     or certificate offered by the institution of higher 
     education.'';
       (2) by striking subsection (l) and inserting the following:
       ``(l) Courses Offered Through Distance Education.--
       ``(1) Relation to correspondence courses.--
       ``(A) In general.--A student enrolled in a course of 
     instruction at an institution of higher education that is 
     offered principally through distance education and leads to a 
     recognized certificate, or associate, baccalaureate, or 
     graduate degree, conferred by such institution, shall not be 
     considered to be enrolled in correspondence courses.
       ``(B) Exception.--An institution of higher education 
     referred to in subparagraph (A) shall not include an 
     institution or school described in section 3(3)(C) of the 
     Carl D. Perkins Career and Technical Education Act of 2006.
       ``(2) Restriction or reductions of financial aid.--A 
     student's eligibility to receive grants, loans, or work 
     assistance under this title shall be reduced if a financial 
     aid officer determines under the discretionary authority 
     provided in section 479A that distance education results in a 
     substantially reduced cost of attendance to such student.
       ``(3) Special rule.--For award years prior to July 1, 2008, 
     the Secretary shall not take any compliance, disallowance, 
     penalty, or other action against a student or an eligible 
     institution when such action arises out of such institution's 
     prior award of student assistance under this title if the 
     institution demonstrates to the satisfaction of the Secretary 
     that its course of instruction would have been in conformance 
     with the requirements of this subsection.''; and
       (3) by adding at the end the following:
       ``(s) Students With Intellectual Disabilities.--
     Notwithstanding subsection (a), in order to receive any grant 
     or work assistance under subparts 1 and 3 of part A and part 
     C of this title, a student with an intellectual disability 
     shall--
       ``(1) be an individual with an intellectual disability 
     whose mental retardation or other significant cognitive 
     impairment substantially impacts the individual's 
     intellectual and cognitive functioning;
       ``(2)(A) be a student eligible for assistance under the 
     Individuals with Disabilities Education Act who--
       ``(i) has completed secondary school with a diploma or 
     certificate; or
       ``(ii) has completed secondary school; or
       ``(B) be an individual who is no longer eligible for 
     assistance under the Individuals with Disabilities Education 
     Act because the individual has exceeded the maximum age for 
     which the State provides a free appropriate public education;
       ``(3) be enrolled or accepted for enrollment in a 
     comprehensive transition and postsecondary education program 
     that--
       ``(A) is designed for students with an intellectual 
     disability who are seeking to continue academic, vocational, 
     and independent living instruction at the institution in 
     order to prepare for gainful employment and independent 
     living;
       ``(B) includes an advising and curriculum structure;
       ``(C) requires students to participate on at least a half-
     time basis, as determined by the institution; or
       ``(D) includes--
       ``(i) regular enrollment in courses offered by the 
     institution;
       ``(ii) auditing or participating in courses offered by the 
     institution for which the student does not receive regular 
     academic credit;
       ``(iii) enrollment in noncredit, nondegree courses;
       ``(iv) participation in internships; or
       ``(v) a combination of 2 or more of the activities 
     described in clauses (i) through (iv);
       ``(4) be maintaining satisfactory progress in the program 
     as determined by the institution, in accordance with 
     standards established by the institution; and
       ``(5) meet the requirements of paragraphs (3), (4), (5), 
     and (6) of subsection (a).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take affect on July 1, 2008.

     SEC. 475. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.

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

     SEC. 476. INSTITUTIONAL REFUNDS.

       (a) Amendment.--Section 484B(c)(2) (20 U.S.C. 1091B(c)(2)) 
     is amended by striking ``may determine the appropriate 
     withdrawal date.'' and inserting ``may determine--
       ``(A) the appropriate withdrawal date; and

[[Page 19935]]

       ``(B) that the requirements of subsection (b)(2) do not 
     apply to the student.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on July 1, 2008.

     SEC. 477. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION 
                   FOR STUDENTS.

       Section 485 (20 U.S.C. 1092) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking subparagraph (M) and inserting the 
     following:
       ``(M) the terms and conditions of the loans that students 
     receive under parts B, D, and E;'';
       (ii) in subparagraph (N), by striking ``and'' after the 
     semicolon;
       (iii) in subparagraph (O), by striking the period and 
     inserting a semicolon; and
       (iv) by adding at the end the following:
       ``(P) institutional policies and sanctions related to 
     copyright infringement that inform students that unauthorized 
     distribution of copyrighted material on the institution's 
     information technology systems, including engaging in 
     unauthorized peer-to-peer file sharing, may subject the 
     students to civil and criminal penalties;''
       ``(Q) student body diversity at the institution, including 
     information on the percentage of enrolled, full-time students 
     who are--
       ``(i) male;
       ``(ii) female;
       ``(iii) from a low-income background; and
       ``(iv) a self-identified member of a major racial or ethnic 
     group;
       ``(R) the placement in employment of, and types of 
     employment obtained by, graduates of the institution's degree 
     or certificate programs, gathered from such sources as alumni 
     surveys, student satisfaction surveys, the National Survey of 
     Student Engagement, the Community College Survey of Student 
     Engagement, State data systems, or other relevant sources;
       ``(S) the types of graduate and professional education in 
     which graduates of the institution's 4-year degree programs 
     enrolled, gathered from such sources as alumni surveys, 
     student satisfaction surveys, the National Survey of Student 
     Engagement, State data systems, or other relevant sources; 
     and
       ``(T) the fire safety report prepared by the institution 
     pursuant to subsection (i).'';
       (B) by striking paragraph (4) and inserting the following:
       ``(4) For purposes of this section, institutions may--
       ``(A) exclude from the information disclosed in accordance 
     with subparagraph (L) of paragraph (1) the completion or 
     graduation rates of students who leave school to serve in the 
     Armed Forces, on official church missions, or with a 
     recognized foreign aid service of the Federal Government; or
       ``(B) in cases where the students described in subparagraph 
     (A) represent 20 percent or more of the certificate- or 
     degree-seeking, full-time, undergraduate students at the 
     institution, the institution may recalculate the completion 
     or graduation rates of such students by excluding from the 
     calculation described in paragraph (3) the time period such 
     students were not enrolled due to their service in the Armed 
     Forces, on official church missions, or with a recognized 
     foreign aid service of the Federal Government.''; and
       (C) by adding at the end the following:
       ``(7) The information disclosed under subparagraph (L) of 
     paragraph (1), or reported under subsection (e), shall 
     include information disaggregated by gender, by each major 
     racial and ethnic subgroup, by recipients of a Federal Pell 
     Grant, by recipients of a loan made under this part or part D 
     (other than a loan made under section 428H or a Federal 
     Direct Unsubsidized Stafford Loan) who did not receive a 
     Federal Pell Grant, and by recipients of neither a Federal 
     Pell Grant nor a loan made under this part or part D (other 
     than a loan made under section 428H or a Federal Direct 
     Unsubsidized Stafford Loan), if the number of students in 
     such subgroup or with such status is sufficient to yield 
     statistically reliable information and reporting would not 
     reveal personally identifiable information about an 
     individual student. If such number is not sufficient for such 
     purposes, then the institution shall note that the 
     institution enrolled too few of such students to so disclose 
     or report with confidence and confidentiality.'';
       (2) in subsection (b)--
       (A) in paragraph (1)(A), by striking the subparagraph 
     designation and all that follows through ``465.'' and 
     inserting the following:
       ``(A) Each eligible institution shall, through financial 
     aid offices or otherwise, provide counseling to borrowers of 
     loans that are made, insured, or guaranteed under part B 
     (other than loans made pursuant to section 428C or loans made 
     to parents pursuant to section 428B), or made under part D 
     (other than Federal Direct Consolidation Loans or Federal 
     Direct PLUS Loans made to parents) or E, prior to the 
     completion of the course of study for which the borrower 
     enrolled at the institution or at the time of departure from 
     such institution. The counseling required by this subsection 
     shall include--
       ``(i) information on the repayment plans available, 
     including a discussion of the different features of each plan 
     and sample information showing the difference in interest 
     paid and total payments under each plan;
       ``(ii) the average anticipated monthly repayments under the 
     standard repayment plan and, at the borrower's request, the 
     other repayment plans for which the borrower is eligible;
       ``(iii) such debt and management strategies as the 
     institution determines are designed to facilitate the 
     repayment of such indebtedness;
       ``(iv) an explanation that the borrower has the ability to 
     prepay each such loan, pay the loan on a shorter schedule, 
     and change repayment plans;
       ``(v) the terms and conditions under which the student may 
     obtain full or partial forgiveness or cancellation of 
     principal or interest under sections 428J, 460, and 465 (to 
     the extent that such sections are applicable to the student's 
     loans);
       ``(vi) the terms and conditions under which the student may 
     defer repayment of principal or interest or be granted 
     forbearance under subsections (b)(1)(M) and (o) of section 
     428, 428H(e)(7), subsections (f) and (l) of section 455, and 
     section 464(c)(2), and the potential impact of such deferment 
     or forbearance;
       ``(vii) the consequences of default on such loans;
       ``(viii) information on the effects of using a 
     consolidation loan to discharge the borrower's loans under 
     parts B, D, and E, including, at a minimum--

       ``(I) the effects of consolidation on total interest to be 
     paid, fees to be paid, and length of repayment;
       ``(II) the effects of consolidation on a borrower's 
     underlying loan benefits, including all grace periods, loan 
     forgiveness, cancellation, and deferment opportunities;
       ``(III) the ability of the borrower to prepay the loan or 
     change repayment plans; and
       ``(IV) that borrower benefit programs may vary among 
     different loan holders; and

       ``(ix) a notice to borrowers about the availability of the 
     National Student Loan Data System and how the system can be 
     used by a borrower to obtain information on the status of the 
     borrower's loans.''; and
       (B) by adding at the end the following:
       ``(3) Each eligible institution shall, during the exit 
     interview required by this subsection, provide to a borrower 
     of a loan made under part B, D, or E a clear and conspicuous 
     notice describing the general effects of using a 
     consolidation loan to discharge the borrower's student loans, 
     including--
       ``(A) the effects of consolidation on total interest to be 
     paid, fees to be paid, and length of repayment;
       ``(B) the effects of consolidation on a borrower's 
     underlying loan benefits, including loan forgiveness, 
     cancellation, and deferment;
       ``(C) the ability for the borrower to prepay the loan, pay 
     on a shorter schedule, and to change repayment plans, and 
     that borrower benefit programs may vary among different loan 
     holders;
       ``(D) a general description of the types of tax benefits 
     which may be available to borrowers of student loans; and
       ``(E) the consequences of default.'';
       (3) in subsection (d)(2)--
       (A) by inserting ``grant assistance, as well as State'' 
     after ``describing State''; and
       (B) by inserting ``and other means, including through the 
     Internet'' before the period at the end;
       (4) in subsection (e), by striking paragraph (3) and 
     inserting the following:
       ``(3) For purposes of this subsection, institutions may--
       ``(A) exclude from the reporting requirements under 
     paragraphs (1) and (2) the completion or graduation rates of 
     students and student athletes who leave school to serve in 
     the Armed Forces, on official church missions, or with a 
     recognized foreign aid service of the Federal Government; or
       ``(B) in cases where the students described in subparagraph 
     (A) represent 20 percent or more of the certificate- or 
     degree-seeking, full-time, undergraduate students at the 
     institution, the institution may calculate the completion or 
     graduation rates of such students by excluding from the 
     calculations described in paragraph (1) the time period such 
     students were not enrolled due to their service in the Armed 
     Forces, on official church missions, or with a recognized 
     foreign aid service of the Federal Government.'';
       (5) in subsection (f)--
       (A) in paragraph (1)--
       (i) the matter preceding subparagraph (A), by inserting ``, 
     other than a foreign institution of higher education,'' after 
     ``under this title''; and
       (ii) by adding at the end the following:
       ``(J) A statement of current campus policies regarding 
     immediate emergency response and evacuation procedures, 
     including the use of electronic and cellular communication 
     (if appropriate), which policies shall include procedures--
       ``(i) to notify the campus community in a reasonable and 
     timely manner in the event of a significant emergency or 
     dangerous situation, involving an immediate threat to the 
     health or safety of students or staff, occurring on the 
     campus;
       ``(ii) to publicize emergency response and evacuation 
     procedures on an annual basis in a manner designed to reach 
     students and staff; and
       ``(iii) to test emergency response and evacuation 
     procedures on an annual basis.'';
       (B) by redesignating paragraph (15) as paragraph (17); and
       (C) by inserting after paragraph (14) the following:
       ``(15) Compliance report.--The Secretary shall annually 
     report to the authorizing committees regarding compliance 
     with this subsection by institutions of higher education, 
     including an up-to-date report on the Secretary's monitoring 
     of such compliance.
       ``(16) Best practices.--The Secretary may seek the advice 
     and counsel of the Attorney General concerning the 
     development, and dissemination to institutions of higher 
     education,

[[Page 19936]]

     of best practices information about campus safety and 
     emergencies.''; and
       (6) by adding at the end the following:
       ``(h) Transfer of Credit Policies.--
       ``(1) Disclosure.--Each institution of higher education 
     participating in any program under this title shall publicly 
     disclose in a readable and comprehensible manner the 
     institution's transfer of credit policies which shall include 
     a statement of the institution's current transfer of credit 
     policies that includes, at a minimum--
       ``(A) a statement of whether the institution denies a 
     transfer of credit solely on the basis of the agency or 
     association that accredited such other institution of higher 
     education; and
       ``(B) a list of institutions of higher education with which 
     the institution has established an articulation agreement.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to--
       ``(A) authorize the Secretary or the Accreditation and 
     Institutional Quality and Integrity Advisory Committee to 
     require particular policies, procedures, or practices by 
     institutions of higher education with respect to transfer of 
     credit;
       ``(B) authorize an officer or employee of the Department to 
     exercise any direction, supervision, or control over the 
     curriculum, program of instruction, administration, or 
     personnel of any institution of higher education, or over any 
     accrediting agency or association;
       ``(C) limit the application of the General Education 
     Provisions Act; or
       ``(D) create any legally enforceable right on the part of a 
     student to require an institution of higher education to 
     accept a transfer of credit from another institution.
       ``(i) Disclosure of Fire Safety Standards and Measures.--
       ``(1) Annual fire safety reports on student housing 
     required.--Each eligible institution participating in any 
     program under this title shall, on an annual basis, publish a 
     fire safety report, which shall contain information with 
     respect to the campus fire safety practices and standards of 
     that institution, including--
       ``(A) statistics concerning the following in each on-campus 
     student housing facility during the most recent calendar 
     years for which data are available--
       ``(i) the number of fires and the cause of each fire;
       ``(ii) the number of injuries related to a fire that result 
     in treatment at a medical facility;
       ``(iii) the number of deaths related to a fire; and
       ``(iv) the value of property damage caused by a fire;
       ``(B) a description of each on-campus student housing 
     facility fire safety system, including the fire sprinkler 
     system;
       ``(C) the number of regular mandatory supervised fire 
     drills;
       ``(D) policies or rules on portable electrical appliances, 
     smoking, and open flames (such as candles), procedures for 
     evacuation, and policies regarding fire safety education and 
     training programs provided to students, faculty, and staff; 
     and
       ``(E) plans for future improvements in fire safety, if 
     determined necessary by such institution.
       ``(2) Report to the secretary.--Each eligible institution 
     participating in any program under this title shall, on an 
     annual basis submit to the Secretary a copy of the statistics 
     required to be made available under subparagraph (A).
       ``(3) Current information to campus community.--Each 
     institution participating in any program under this title 
     shall--
       ``(A) make, keep, and maintain a log, recording all fires 
     in on-campus student housing facilities, including the 
     nature, date, time, and general location of each fire; and
       ``(B) make annual reports to the campus community on such 
     fires.
       ``(4) Responsibilities of the secretary.--The Secretary 
     shall--
       ``(A) make such statistics submitted to the Secretary 
     available to the public; and
       ``(B) in coordination with nationally recognized fire 
     organizations and representatives of institutions of higher 
     education, representatives of associations of institutions of 
     higher education, and other organizations that represent and 
     house a significant number of students--
       ``(i) identify exemplary fire safety policies, procedures, 
     programs, and practices;
       ``(ii) disseminate information to the Administrator of the 
     United States Fire Administration;
       ``(iii) make available to the public information concerning 
     those policies, procedures, programs, and practices that have 
     proven effective in the reduction of fires; and
       ``(iv) develop a protocol for institutions to review the 
     status of their fire safety systems.
       ``(5) Rules of construction.--Nothing in this subsection 
     shall be construed to--
       ``(A) authorize the Secretary to require particular 
     policies, procedures, programs, or practices by institutions 
     of higher education with respect to fire safety, other than 
     with respect to the collection, reporting, and dissemination 
     of information required by this subsection;
       ``(B) affect the Family Educational Rights and Privacy Act 
     of 1974 or the regulations issued under section 264 of the 
     Health Insurance Portability and Accountability Act of 1996 
     (42 U.S.C. 1320d-2 note);
       ``(C) create a cause of action against any institution of 
     higher education or any employee of such an institution for 
     any civil liability; and
       ``(D) establish any standard of care.
       ``(6) Compliance report.--The Secretary shall annually 
     report to the authorizing committees regarding compliance 
     with this subsection by institutions of higher education, 
     including an up-to-date report on the Secretary's monitoring 
     of such compliance.
       ``(7) Evidence.--Notwithstanding any other provision of 
     law, evidence regarding compliance or noncompliance with this 
     subsection shall not be admissible as evidence in any 
     proceeding of any court, agency, board, or other entity, 
     except with respect to an action to enforce this 
     subsection.''.

     SEC. 478. ENTRANCE COUNSELING REQUIRED.

       Section 485 (as amended by section 477) is further 
     amended--
       (1) by redesignating subsections (b) through (i) as 
     subsections (c) through (j), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) Entrance Counseling for Borrowers.--
       ``(1) Disclosure required prior to disbursement.--
       ``(A) In general.--Each eligible institution shall, at or 
     prior to the time of a disbursement to a first-time student 
     borrower of a loan made, insured, or guaranteed under part B 
     or D, ensure that the borrower receives comprehensive 
     information on the terms and conditions of the loan and the 
     responsibilities the borrower has with respect to such loan. 
     Such information shall be provided in simple and 
     understandable terms and may be provided--
       ``(i) during an entrance counseling session conducted in 
     person;
       ``(ii) on a separate written form provided to the borrower 
     that the borrower signs and returns to the institution; or
       ``(iii) online, with the borrower acknowledging receipt and 
     understanding of the information.
       ``(B) Use of interactive programs.--The Secretary shall 
     encourage institutions to carry out the requirements of 
     subparagraph (A) through the use of interactive programs that 
     test the borrowers' understanding of the terms and conditions 
     of the borrowers' loans under part B or D, using 
     comprehensible language and displays with clear formatting.
       ``(2) Information to be provided.--The information provided 
     to the borrower under paragraph (1)(A) shall include--
       ``(A) an explanation of the use of the Master Promissory 
     Note;
       ``(B) in the case of a loan made under section 428B or 
     428H, a Federal Direct PLUS Loan, or a Federal Direct 
     Unsubsidized Stafford Loan--
       ``(i) the ability of the borrower to pay the interest while 
     the borrower is in school; and
       ``(ii) how often interest is capitalized;
       ``(C) the definition of half-time enrollment at the 
     institution, during regular terms and summer school, if 
     applicable, and the consequences of not maintaining half-time 
     enrollment;
       ``(D) an explanation of the importance of contacting the 
     appropriate institutional offices if the borrower withdraws 
     prior to completing the borrower's program of study so that 
     the institution can provide exit counseling, including 
     information regarding the borrower's repayment options and 
     loan consolidation;
       ``(E) the obligation of the borrower to repay the full 
     amount of the loan even if the borrower does not complete the 
     program in which the borrower is enrolled;
       ``(F) information on the National Student Loan Data System 
     and how the borrower can access the borrower's records; and
       ``(G) the name of an individual the borrower may contact if 
     the borrower has any questions about the borrower's rights 
     and responsibilities or the terms and conditions of the 
     loan.''.

     SEC. 479. NATIONAL STUDENT LOAN DATA SYSTEM.

       Section 485B (20 U.S.C. 1092b) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (6) through (10) as 
     paragraphs (7) through (11), respectively;
       (B) in paragraph (5) (as added by Public Law 101-610), by 
     striking ``effectiveness.'' and inserting ``effectiveness;''; 
     and
       (C) by redesignating paragraph (5) (as added by Public Law 
     101-234) as paragraph (6);
       (2) by redesignating subsections (d) through (g) as 
     subsections (e) through (h), respectively; and
       (3) by inserting after subsection (c) the following:
       ``(d) Principles for Administering the Data System.--In 
     managing the National Student Loan Data System, the Secretary 
     shall take actions necessary to maintain confidence in the 
     data system, including, at a minimum--
       ``(1) ensuring that the primary purpose of access to the 
     data system by guaranty agencies, eligible lenders, and 
     eligible institutions of higher education is for legitimate 
     program operations, such as the need to verify the 
     eligibility of a student, potential student, or parent for 
     loans under part B, D, or E;
       ``(2) prohibiting nongovernmental researchers and policy 
     analysts from accessing personally identifiable information;
       ``(3) creating a disclosure form for students and potential 
     students that is distributed when such students complete the 
     common financial reporting form under section 483, and as a 
     part of the exit counseling process under section 485(b), 
     that--
       ``(A) informs the students that any title IV grant or loan 
     the students receive will be included in the National Student 
     Loan Data System, and instructs the students on how to access 
     that information;
       ``(B) describes the categories of individuals or entities 
     that may access the data relating to such grant or loan 
     through the data system, and for what purposes access is 
     allowed;

[[Page 19937]]

       ``(C) defines and explains the categories of information 
     included in the data system;
       ``(D) provides a summary of the provisions of the Family 
     Educational Rights and Privacy Act of 1974 and other 
     applicable Federal privacy statutes, and a statement of the 
     students' rights and responsibilities with respect to such 
     statutes;
       ``(E) explains the measures taken by the Department to 
     safeguard the students' data; and
       ``(F) includes other information as determined appropriate 
     by the Secretary;
       ``(4) requiring guaranty agencies, eligible lenders, and 
     eligible institutions of higher education that enter into an 
     agreement with a potential student, student, or parent of 
     such student regarding a loan under part B, D, or E, to 
     inform the student or parent that such loan shall be--
       ``(A) submitted to the data system; and
       ``(B) accessible to guaranty agencies, eligible lenders, 
     and eligible institutions of higher education determined by 
     the Secretary to be authorized users of the data system;
       ``(5) regularly reviewing the data system to--
       ``(A) delete inactive users from the data system;
       ``(B) ensure that the data in the data system are not being 
     used for marketing purposes; and
       ``(C) monitor the use of the data system by guaranty 
     agencies and eligible lenders to determine whether an agency 
     or lender is accessing the records of students in which the 
     agency or lender has no existing financial interest; and
       ``(6) developing standardized protocols for limiting access 
     to the data system that include--
       ``(A) collecting data on the usage of the data system to 
     monitor whether access has been or is being used contrary to 
     the purposes of the data system;
       ``(B) defining the steps necessary for determining whether, 
     and how, to deny or restrict access to the data system; and
       ``(C) determining the steps necessary to reopen access to 
     the data system following a denial or restriction of 
     access.''; and
       (4) by striking subsection (e) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(e) Reports to Congress.--
       ``(1) Annual report.--Not later than September 30 of each 
     fiscal year, the Secretary shall prepare and submit to the 
     appropriate committees of Congress a report describing--
       ``(A) the results obtained by the establishment and 
     operation of the National Student Loan Data System authorized 
     by this section;
       ``(B) the effectiveness of existing privacy safeguards in 
     protecting student and parent information in the data system;
       ``(C) the success of any new authorization protocols in 
     more effectively preventing abuse of the data system;
       ``(D) the ability of the Secretary to monitor how the 
     system is being used, relative to the intended purposes of 
     the data system; and
       ``(E) any protocols developed under subsection (d)(6) 
     during the preceding fiscal year.
       ``(2) Study.--
       ``(A) In general.--The Secretary shall conduct a study 
     regarding--
       ``(i) available mechanisms for providing students and 
     parents with the ability to opt in or opt out of allowing 
     eligible lenders to access their records in the National 
     Student Loan Data System; and
       ``(ii) appropriate protocols for limiting access to the 
     data system, based on the risk assessment required under 
     subchapter III of chapter 35 of title 44, United States Code.
       ``(B) Submission of study.--Not later than 3 years after 
     the date of enactment of the Higher Education Amendments of 
     2007, the Secretary shall prepare and submit a report on the 
     findings of the study to the appropriate committees of 
     Congress.''.

     SEC. 480. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

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

     ``SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

       ``(a) In General.--The Secretary shall implement, in 
     cooperation with States, institutions of higher education, 
     secondary schools, middle schools, early intervention and 
     outreach programs under this title, other agencies and 
     organizations involved in student financial assistance and 
     college access, public libraries, community centers, 
     employers, and businesses, a comprehensive system of early 
     financial aid information in order to provide students and 
     families with early information about financial aid and early 
     estimates of such students' eligibility for financial aid 
     from multiple sources. Such system shall include the 
     activities described in subsections (b) and (c).
       ``(b) Communication of Availability of Aid and Aid 
     Eligibility.--
       ``(1) Students who receive benefits.--The Secretary shall--
       ``(A) make special efforts to notify students, who receive 
     or are eligible to receive benefits under a Federal means-
     tested benefit program (including the food stamp program 
     under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)) or 
     another such benefit program as determined by the Secretary, 
     of such students' potential eligibility for a maximum Federal 
     Pell Grant under subpart 1 of part A; and
       ``(B) disseminate such informational materials as the 
     Secretary determines necessary.
       ``(2) Middle school students.--The Secretary, in 
     cooperation with States, institutions of higher education, 
     other organizations involved in college access and student 
     financial aid, middle schools, and programs under this title 
     that serve middle school students, shall make special efforts 
     to notify students and their parents of the availability of 
     financial aid under this title and, in accordance with 
     subsection (c), shall provide nonbinding estimates of grant 
     and loan aid that an individual may be eligible for under 
     this title upon completion of an application form under 
     section 483(a). The Secretary shall ensure that such 
     information is as accurate as possible and that such 
     information is provided in an age-appropriate format using 
     dissemination mechanisms suitable for students in middle 
     school.
       ``(3) Secondary school students.--The Secretary, in 
     cooperation with States, institutions of higher education, 
     other organizations involved in college access and student 
     financial aid, secondary schools, and programs under this 
     title that serve secondary school students, shall make 
     special efforts to notify students in secondary school and 
     their parents, as early as possible but not later than such 
     students' junior year of secondary school, of the 
     availability of financial aid under this title and, in 
     accordance with subsection (c), shall provide nonbinding 
     estimates of the amounts of grant and loan aid that an 
     individual may be eligible for under this title upon 
     completion of an application form under section 483(a). The 
     Secretary shall ensure that such information is as accurate 
     as possible and that such information is provided in an age-
     appropriate format using dissemination mechanisms suitable 
     for students in secondary school.
       ``(4) Adult learners.--The Secretary, in cooperation with 
     States, institutions of higher education, other organizations 
     involved in college access and student financial aid, 
     employers, workforce investment boards and public libraries, 
     shall make special efforts to provide individuals who would 
     qualify as independent students, as defined in section 
     480(d), with information regarding the availability of 
     financial aid under this title and, in accordance with 
     subsection (c), with nonbinding estimates of the amounts of 
     grant and loan aid that an individual may be eligible for 
     under this title upon completion of an application form under 
     section 483(a). The Secretary shall ensure that such 
     information--
       ``(A) is as accurate as possible;
       ``(B) includes specific information regarding the 
     availability of financial aid for students qualified as 
     independent students, as defined in section 480(d); and
       ``(C) uses dissemination mechanisms suitable for adult 
     learners.
       ``(5) Public awareness campaign.--Not later than 2 years 
     after the date of enactment of the Higher Education 
     Amendments of 2007, the Secretary, in coordination with 
     States, institutions of higher education, early intervention 
     and outreach programs under this title, other agencies and 
     organizations involved in student financial aid, local 
     educational agencies, public libraries, community centers, 
     businesses, employers, employment services, workforce 
     investment boards, and movie theaters, shall implement a 
     public awareness campaign in order to increase national 
     awareness regarding the availability of financial aid under 
     this title. The public awareness campaign shall disseminate 
     accurate information regarding the availability of financial 
     aid under this title and shall be implemented, to the extent 
     practicable, using a variety of media, including print, 
     television, radio and the Internet. The Secretary shall 
     design and implement the public awareness campaign based upon 
     relevant independent research and the information and 
     dissemination strategies found most effective in implementing 
     paragraphs (1) through (4).
       ``(c) Availability of Nonbinding Estimates of Federal 
     Financial Aid Eligibility.--
       ``(1) In general.--The Secretary, in cooperation with 
     States, institutions of higher education, and other agencies 
     and organizations involved in student financial aid, shall 
     provide, via a printed form and the Internet or other 
     electronic means, the capability for individuals to determine 
     easily, by entering relevant data, nonbinding estimates of 
     amounts of grant and loan aid an individual may be eligible 
     for under this title upon completion and processing of an 
     application and enrollment in an institution of higher 
     education.
       ``(2) Data elements.--The Secretary, in cooperation with 
     States, institutions of higher education, and other agencies 
     and organizations involved in student financial aid, shall 
     determine the data elements that are necessary to create a 
     simplified form that individuals can use to obtain easily 
     nonbinding estimates of the amounts of grant and loan aid an 
     individual may be eligible for under this title.
       ``(3) Qualification to use simplified application.--The 
     capability provided under this paragraph shall include the 
     capability to determine whether the individual is eligible to 
     submit a simplified application form under paragraph (2)(B) 
     or (3)(B) of section 483(a).''.

     SEC. 481. PROGRAM PARTICIPATION AGREEMENTS.

       Section 487 (20 U.S.C. 1094) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (21), (22), and (23) as 
     paragraphs (22), (23), and (24), respectively;
       (B) by inserting after paragraph (20) the following:
       ``(21) Code of conduct.--
       ``(A) In general.--The institution will establish, follow, 
     and enforce a code of conduct regarding student loans that 
     includes not less than the following:
       ``(i) Revenue sharing prohibition.--The institution is 
     prohibited from receiving anything

[[Page 19938]]

     of value from any lender in exchange for any advantage sought 
     by the lender to make educational loans to a student 
     enrolled, or who is expected to be enrolled, at the 
     institution, except that an institution shall not be 
     prohibited from receiving a philanthropic contribution from a 
     lender if the contribution is not made in exchange for any 
     such advantage.
       ``(ii) Gift and trip prohibition.--Any employee who is 
     employed in the financial aid office of the institution, or 
     who otherwise has responsibilities with respect to 
     educational loans or other financial aid of the institution, 
     is prohibited from taking from any lender any gift or trip 
     worth more than nominal value, except for reasonable expenses 
     for professional development that will improve the efficiency 
     and effectiveness of programs under this title and for 
     domestic travel to such professional development.
       ``(iii) Contracting arrangements.--Any employee who is 
     employed in the financial aid office of the institution, or 
     who otherwise has responsibilities with respect to 
     educational loans or other financial aid of the institution, 
     shall be prohibited from entering into any type of consulting 
     arrangement or other contract to provide services to a 
     lender.
       ``(iv) Advisory board compensation.--Any employee who is 
     employed in the financial aid office of the institution, or 
     who otherwise has responsibilities with respect to 
     educational loans or other student financial aid of the 
     institution, and who serves on an advisory board, commission, 
     or group established by a lender or group of lenders shall be 
     prohibited from receiving anything of value from the lender 
     or group of lenders, except that the employee may be 
     reimbursed for reasonable expenses incurred in serving on 
     such advisory board, commission or group.
       ``(v) Interaction with borrowers.--The institution will 
     not--

       ``(I) for any first-time borrower, assign, through award 
     packaging or other methods, the borrower's loan to a 
     particular lender; and
       ``(II) refuse to certify, or, delay certification of, any 
     loan in accordance with paragraph (6) based on the borrower's 
     selection of a particular lender or guaranty agency.

       ``(B) Designation.--The institution will designate an 
     individual who shall be responsible for signing an annual 
     attestation on behalf of the institution that the institution 
     agrees to, and is in compliance with, the requirements of the 
     code of conduct described in this paragraph. Such individual 
     shall be the chief executive officer, chief operating 
     officer, chief financial officer, or comparable official, of 
     the institution, and shall annually submit the signed 
     attestation to the Secretary.
       ``(C) Availability.--The institution will make the code of 
     conduct widely available to the institution's faculty 
     members, students, and parents through a variety of means, 
     including the institution's website.'';
       (C) in paragraph (24) (as redesignated by subparagraph 
     (A)), by adding at the end the following:
       ``(D) In the case of a proprietary institution of higher 
     education as defined in section 102(b), the institution shall 
     be considered in compliance with the requirements of 
     subparagraph (A) for any student to whom the institution 
     electronically transmits a message containing a voter 
     registration form acceptable for use in the State in which 
     the institution is located, or an Internet address where such 
     a form can be downloaded, if such information is in an 
     electronic message devoted solely to voter registration.''; 
     and
       (D) by adding at the end the following:
       ``(25) In the case of a proprietary institution of higher 
     education as defined in section 102(b), the institution will, 
     as calculated in accordance with subsection (h)(1), have not 
     less than 10 percent of its revenues from sources other than 
     funds provided under this title, or will be subject to the 
     sanctions described in subsection (h)(2).
       ``(26) Preferred lender lists.--
       ``(A) In general.--In the case of an institution (including 
     an employee or agent of an institution) that maintains a 
     preferred lender list, in print or any other medium, through 
     which the institution recommends one or more specific lenders 
     for loans made under part B to the students attending the 
     institution (or the parents of such students), the 
     institution will--
       ``(i) clearly and fully disclose on the preferred lender 
     list--

       ``(I) why the institution has included each lender as a 
     preferred lender, especially with respect to terms and 
     conditions favorable to the borrower; and
       ``(II) that the students attending the institution (or the 
     parents of such students) do not have to borrow from a lender 
     on the preferred lender list;

       ``(ii) ensure, through the use of the list provided by the 
     Secretary under subparagraph (C), that--

       ``(I) there are not less than 3 lenders named on the 
     preferred lending list that are not affiliates of each other; 
     and
       ``(II) the preferred lender list--

       ``(aa) specifically indicates, for each lender on the list, 
     whether the lender is or is not an affiliate of each other 
     lender on the list; and
       ``(bb) if the lender is an affiliate of another lender on 
     the list, describes the specifics of such affiliation; and
       ``(iii) establish a process to ensure that lenders are 
     placed upon the preferred lender list on the basis of the 
     benefits provided to borrowers, including --

       ``(I) highly competitive interest rates, terms, or 
     conditions for loans made under part B;
       ``(II) high-quality customer service for such loans; or
       ``(III) additional benefits beyond the standard terms and 
     conditions for such loans.

       ``(B) Definition of affiliate; control.--
       ``(i) Definition of affiliate.--For the purposes of 
     subparagraph (A)(ii) the term `affiliate' means a person that 
     controls, is controlled by, or is under common control with, 
     another person.
       ``(ii) Control.--For purposes of subparagraph (A)(ii), a 
     person has control over another person if--

       ``(I) the person directly or indirectly, or acting through 
     1 or more others, owns, controls, or has the power to vote 5 
     percent or more of any class of voting securities of such 
     other person;
       ``(II) the person controls, in any manner, the election of 
     a majority of the directors or trustees of such other person; 
     or
       ``(III) the Secretary determines (after notice and 
     opportunity for a hearing) that the person directly or 
     indirectly exercises a controlling interest over the 
     management or policies of such other person.

       ``(C) List of lender affiliates.--The Secretary, in 
     consultation with the Director of the Federal Deposit 
     Insurance Corporation, shall maintain and update a list of 
     lender affiliates of all eligible lenders, and shall provide 
     such list to the eligible institutions for use in carrying 
     out subparagraph (A).'';
       (2) in subsection (c)(1)(A)(i), by inserting ``, except 
     that the Secretary may modify the requirements of this clause 
     with regard to an institution outside the United States'' 
     before the semicolon at the end;
       (3) by redesignating subsections (d) and (e) as subsection 
     (f) and (g), respectively;
       (4) by inserting after subsection (c) the following:
       ``(d) Institutional Requirements for Teach-Outs.--
       ``(1) In general.--In the event the Secretary initiates the 
     limitation, suspension, or termination of the participation 
     of an institution of higher education in any program under 
     this title under the authority of subsection (c)(1)(F) or 
     initiates an emergency action under the authority of 
     subsection (c)(1)(G) and its prescribed regulations, the 
     Secretary shall require that institution to prepare a teach-
     out plan for submission to the institution's accrediting 
     agency or association in compliance with section 496(c)(4), 
     the Secretary's regulations on teach-out plans, and the 
     standards of the institution's accrediting agency or 
     association.
       ``(2) Teach-out plan defined.--In this subsection, the term 
     `teach-out plan' means a written plan that provides for the 
     equitable treatment of students if an institution of higher 
     education ceases to operate before all students have 
     completed their program of study, and may include, if 
     required by the institution's accrediting agency or 
     association, an agreement between institutions for such a 
     teach-out plan.
       ``(e) Violation of Code of Conduct Regarding Student 
     Loans.--
       ``(1) In general.--Upon a finding by the Secretary, after 
     reasonable notice and an opportunity for a hearing, that an 
     institution of higher education that has entered into a 
     program participation agreement with the Secretary under 
     subsection (a) willfully contravened the institution's 
     attestation of compliance with the provisions of subsection 
     (a)(21), the Secretary may impose a penalty described in 
     paragraph (2).
       ``(2) Penalties.--A violation of paragraph (1) shall result 
     in the limitation, suspension, or termination of the 
     eligibility of the institution for the loan programs under 
     this title.''; and
       (5) by adding at the end the following:
       ``(h) Implementation of Nontitle IV Revenue Requirement.--
       ``(1) Calculation.--In carrying out subsection (a)(27), a 
     proprietary institution of higher education (as defined in 
     section 102(b)) shall use the cash basis of accounting and 
     count the following funds as from sources of funds other than 
     funds provided under this title:
       ``(A) Funds used by students from sources other than funds 
     received under this title to pay tuition, fees, and other 
     institutional charges to the institution, provided the 
     institution can reasonably demonstrate that such funds were 
     used for such purposes.
       ``(B) Funds used by the institution to satisfy matching-
     fund requirements for programs under this title.
       ``(C) Funds used by a student from savings plans for 
     educational expenses established by or on behalf of the 
     student and which qualify for special tax treatment under the 
     Internal Revenue Code of 1986.
       ``(D) Funds paid by a student, or on behalf of a student by 
     a party other than the institution, to the institution for an 
     education or training program that is not eligible for funds 
     under this title, provided that the program is approved or 
     licensed by the appropriate State agency or an accrediting 
     agency recognized by the Secretary.
       ``(E) Funds generated by the institution from institutional 
     activities that are necessary for the education and training 
     of the institution's students, if such activities are--
       ``(i) conducted on campus or at a facility under the 
     control of the institution;
       ``(ii) performed under the supervision of a member of the 
     institution's faculty; and
       ``(iii) required to be performed by all students in a 
     specific educational program at the institution.
       ``(F) Institutional aid, as follows:

[[Page 19939]]

       ``(i) In the case of loans made by the institution, only 
     the amount of loan repayments received by the institution 
     during the fiscal year for which the determination is made.
       ``(ii) In the case of scholarships provided by the 
     institution, only those scholarship funds provided by the 
     institution that are--

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

       ``(iii) In the case of tuition discounts, only those 
     tuition discounts based upon the academic achievement or 
     financial need of students.
       ``(2) Sanctions.--
       ``(A) Failure to meet requirement for 1 year.--In addition 
     to such other means of enforcing the requirements of this 
     title as may be available to the Secretary, if an institution 
     fails to meet the requirements of subsection (a)(27) in any 
     year, the Secretary may impose 1 or both of the following 
     sanctions on the institution:
       ``(i) Place the institution on provisional certification in 
     accordance with section 498(h) until the institution 
     demonstrates, to the satisfaction of the Secretary, that it 
     is in compliance with subsection (a)(27).
       ``(ii) Require such other increased monitoring and 
     reporting requirements as the Secretary determines necessary 
     until the institution demonstrates, to the satisfaction of 
     the Secretary, that it is in compliance with subsection 
     (a)(27).
       ``(B) Failure to meet requirement for 2 years.--An 
     institution that fails to meet the requirements of subsection 
     (a)(27) for 2 consecutive years shall be ineligible to 
     participate in the programs authorized under this title until 
     the institution demonstrates, to the satisfaction of the 
     Secretary, that it is in compliance with subsection (a)(27).
       ``(3) Public availability of information.--The Secretary 
     shall make publicly available, through the means described in 
     subsection (b) of section 131, any institution that fails to 
     meet the requirements of subsection (a)(27) in any year as an 
     institution that is failing to meet the minimum non-Federal 
     source of revenue requirements of such subsection (a)(27).''.

     SEC. 482. REGULATORY RELIEF AND IMPROVEMENT.

       Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``1998'' and inserting ``2007'' ; and
       (B) by striking ``1999'' and inserting ``2008''; and
       (2) by striking the matter preceding paragraph (2)(A) and 
     inserting the following:
       ``(2) Report.--The Secretary shall review and evaluate the 
     experience of institutions participating as experimental 
     sites and shall, on a biennial basis, submit a report based 
     on the review and evaluation to the authorizing committees. 
     Such report shall include--''; and
       (3) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) by striking ``Upon the submission of the report 
     required by paragraph (2), the'' and inserting ``The''; and
       (ii) by inserting ``periodically'' after ``authorized to'';
       (B) by striking subparagraph (B);
       (C) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (D) in subparagraph (B) (as redesignated by subparagraph 
     (C))--
       (i) by inserting ``, including requirements related to the 
     award process and disbursement of student financial aid (such 
     as innovative delivery systems for modular or compressed 
     courses, or other innovative systems), verification of 
     student financial aid application data, entrance and exit 
     interviews, or other management procedures or processes as 
     determined in the negotiated rulemaking process under section 
     492'' after ``requirements in this title'';
       (ii) by inserting ``(other than an award rule related to an 
     experiment in modular or compressed schedules)'' after 
     ``award rules''; and
       (iii) by inserting ``unless the waiver of such provisions 
     is authorized by another provision under this title'' before 
     the period at the end.

     SEC. 483. TRANSFER OF ALLOTMENTS.

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

     SEC. 484. PURPOSE OF ADMINISTRATIVE PAYMENTS.

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

     SEC. 485. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

       Section 491 (20 U.S.C. 1098) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (C), by striking the period and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) to provide knowledge and understanding of early 
     intervention programs, and to make recommendations that will 
     result in early awareness by low- and moderate-income 
     students and families--
       ``(i) of their eligibility for assistance under this title; 
     and
       ``(ii) to the extent practicable, of their eligibility for 
     other forms of State and institutional need-based student 
     assistance; and
       ``(E) to make recommendations that will expand and improve 
     partnerships among the Federal Government, States, 
     institutions of higher education, and private entities to 
     increase the awareness and the total amount of need-based 
     student assistance available to low- and moderate-income 
     students.'';
       (2) in subsection (c), by adding at the end the following:
       ``(3) The appointment of a member under subparagraph (A) or 
     (B) of paragraph (1) shall be effective upon confirmation of 
     the member by the Senate and publication of such appointment 
     in the Congressional Record.'';
       (3) in subsection (d)(6), by striking ``, but nothing'' and 
     all that follows through ``or analyses'';
       (4) in subsection (j)--
       (A) in paragraph (1)--
       (i) by inserting ``and simplification'' after 
     ``modernization'' each place the term appears; and
       (ii) by striking ``including'' and all that follows through 
     ``Department,''; and
       (B) by striking paragraphs (4) and (5) and inserting the 
     following:
       ``(4) conduct a review and analysis of regulations in 
     accordance with subsection (l); and
       ``(5) conduct a study in accordance with subsection (m).'';
       (5) in subsection (k), by striking ``2004'' and inserting 
     ``2013''; and
       (6) by adding at the end the following:
       ``(l) Review and Analysis of Regulations.--
       ``(1) Recommendations.--The Advisory Committee shall make 
     recommendations to the Secretary and Congress for 
     consideration of future legislative action regarding 
     redundant or outdated regulations under this title, 
     consistent with the Secretary's requirements under section 
     498B.
       ``(2) Review and analysis of regulations.--The Advisory 
     Committee shall conduct a review and analysis of the 
     regulations issued under this title that are in effect at the 
     time of the review and that apply to the operations or 
     activities of participants in the programs assisted under 
     this title. The review and analysis may include a 
     determination of whether the regulation is duplicative, is no 
     longer necessary, is inconsistent with other Federal 
     requirements, or is overly burdensome. In conducting the 
     review, the Advisory Committee shall pay specific attention 
     to evaluating ways in which regulations under this title 
     affecting institutions of higher education (other than 
     institutions described in section 102(a)(1)(C)), that have 
     received in each of the 2 most recent award years prior to 
     the date of enactment of the Higher Education Amendments of 
     2007 less than $200,000 in funds through this title, may be 
     improved, streamlined, or eliminated.
       ``(3) Consultation.--
       ``(A) In general.--In carrying out the review and analysis 
     under paragraph (2), the Advisory Committee shall consult 
     with the Secretary, relevant representatives of institutions 
     of higher education, and individuals who have expertise and 
     experience with the regulations issued under this title, in 
     accordance with subparagraph (B).
       ``(B) Review panels.--The Advisory Committee shall convene 
     not less than 2 review panels of representatives of the 
     groups involved in student financial assistance programs 
     under this title who have experience and expertise in the 
     regulations issued under this title to review the regulations 
     under this title, and to provide recommendations to the 
     Advisory Committee with respect to the review and analysis 
     under paragraph (2). The panels shall be made up of experts 
     in areas such as the operations of the financial assistance 
     programs, the institutional eligibility requirements for the 
     financial assistance programs, regulations not directly 
     related to the operations or the institutional eligibility 
     requirements of the financial assistance programs, and 
     regulations for dissemination of information to students 
     about the financial assistance programs.
       ``(4) Reports to congress.--The Advisory Committee shall 
     submit, not later than 2 years after the completion of the 
     negotiated rulemaking process required under section 492 
     resulting from the amendments to this Act made by the Higher 
     Education Amendments of 2007, a report to the authorizing 
     committees and the Secretary detailing the expert panels' 
     findings and recommendations with respect to the review and 
     analysis under paragraph (2).
       ``(5) Additional support.--The Secretary and the Inspector 
     General of the Department shall provide such assistance and 
     resources to the Advisory Committee as the Secretary and 
     Inspector General determine are necessary to conduct the 
     review required by this subsection.
       ``(m) Study of Innovative Pathways to Baccalaureate Degree 
     Attainment.--
       ``(1) Study required.--The Advisory Committee shall conduct 
     a study of the feasibility of increasing baccalaureate degree 
     attainment rates by reducing the costs and financial barriers 
     to attaining a baccalaureate degree through innovative 
     programs.
       ``(2) Scope of study.--The Advisory Committee shall examine 
     new and existing programs that promote baccalaureate degree 
     attainment through innovative ways, such as dual or 
     concurrent enrollment programs, changes made to the Federal 
     Pell Grant program, simplification

[[Page 19940]]

     of the needs analysis process, compressed or modular 
     scheduling, articulation agreements, and programs that allow 
     2-year institutions of higher education to offer 
     baccalaureate degrees.
       ``(3) Required aspects of the study.--In performing the 
     study described in this subsection, the Advisory Committee 
     shall examine the following aspects of such innovative 
     programs:
       ``(A) The impact of such programs on baccalaureate 
     attainment rates.
       ``(B) The degree to which a student's total cost of 
     attaining a baccalaureate degree can be reduced by such 
     programs.
       ``(C) The ways in which low- and moderate-income students 
     can be specifically targeted by such programs.
       ``(D) The ways in which nontraditional students can be 
     specifically targeted by such programs.
       ``(E) The cost-effectiveness for the Federal Government, 
     States, and institutions of higher education to implement 
     such programs.
       ``(4) Consultation.--
       ``(A) In general.--In performing the study described in 
     this subsection the Advisory Committee shall consult with a 
     broad range of interested parties in higher education, 
     including parents, students, appropriate representatives of 
     secondary schools and institutions of higher education, 
     appropriate State administrators, administrators of dual or 
     concurrent enrollment programs, and appropriate Department 
     officials.
       ``(B) Congressional consultation.--The Advisory Committee 
     shall consult on a regular basis with the authorizing 
     committees in carrying out the study required by this 
     section.
       ``(5) Reports to congress.--
       ``(A) Interim report.--The Advisory Committee shall prepare 
     and submit to the authorizing committees and the Secretary an 
     interim report, not later than 1 year after the date of 
     enactment of the Higher Education Amendments of 2007, 
     describing the progress that has been made in conducting the 
     study required by this subsection and any preliminary 
     findings on the topics identified under paragraph (2).
       ``(B) Final report.--The Advisory Committee shall, not 
     later than 3 years after the date of enactment of the Higher 
     Education Amendments of 2007, prepare and submit to the 
     authorizing committees and the Secretary a final report on 
     the study, including recommendations for legislative, 
     regulatory, and administrative changes based on findings 
     related to the topics identified under paragraph (2).''.

     SEC. 486. REGIONAL MEETINGS.

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

     SEC. 487. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.

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

                       PART G--PROGRAM INTEGRITY

     SEC. 491. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

       Section 496 (20 U.S.C. 1099b) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (4) and inserting the following:
       ``(4)(A) such agency or association consistently applies 
     and enforces standards that respect the stated mission of the 
     institution of higher education, including religious 
     missions, and that ensure that the courses or programs of 
     instruction, training, or study offered by the institution of 
     higher education, including distance education courses or 
     programs, are of sufficient quality to achieve, for the 
     duration of the accreditation period, the stated objective 
     for which the courses or the programs are offered; and
       ``(B) if such agency or association has or seeks to include 
     within its scope of recognition the evaluation of the quality 
     of institutions or programs offering distance education, such 
     agency or association shall, in addition to meeting the other 
     requirements of this subpart, demonstrate to the Secretary 
     that--
       ``(i) the agency or association's standards effectively 
     address the quality of an institution's distance education in 
     the areas identified in section 496(a)(5), except that the 
     agency or association shall not be required to have separate 
     standards, procedures or policies for the evaluation of 
     distance education institutions or programs in order to meet 
     the requirements of this subparagraph; and
       ``(ii) the agency or association requires an institution 
     that offers distance education to have processes through 
     which the institution establishes that the student who 
     registers in a distance education course or program is the 
     same student who participates in and completes the program 
     and receives the academic credit;'';
       (B) in paragraph (5), by striking subparagraph (A) and 
     inserting the following:
       ``(A) success with respect to student achievement in 
     relation to the institution's mission, which may include 
     different standards for different institutions or programs, 
     through the determination of expected levels of student 
     achievement that are established by the institution, and 
     which use, as appropriate, empirical evidence and external 
     indicators with respect to criteria regarding--
       ``(i) student retention rates;
       ``(ii) course completion rates;
       ``(iii) program completion and graduation rates;
       ``(iv) for prebaccalaureate career and technical education 
     programs, degree programs leading to initial professional 
     licensure or certification, and other programs as 
     appropriate--

       ``(I) results on State licensing examinations; and
       ``(II) job placement rates;

       ``(v) as appropriate, enrollment in graduate or 
     professional programs; and
       ``(vi) as appropriate, other student performance 
     information selected by the institution, particularly 
     information--

       ``(I) used by the institution to evaluate or strengthen the 
     institution's programs; and
       ``(II) that reflects the institution's individual mission 
     and the institution's distinctive goals for students;'';

       (C) by striking paragraph (6) and inserting the following:
       ``(6) such an agency or association shall establish and 
     apply review procedures throughout the accrediting process, 
     including evaluation and withdrawal proceedings which comply 
     with due process procedures that provide for--
       ``(A) adequate specification of requirements and 
     deficiencies at the institution of higher education or 
     program examined;
       ``(B) an opportunity for a written response by any such 
     institution to be included, prior to final action, in the 
     evaluation and withdrawal proceedings;
       ``(C) upon the written request of an institution, an 
     opportunity for the institution to appeal any adverse action, 
     including denial, withdrawal, suspension, or termination of 
     accreditation, or placement on probation of an institution, 
     at a hearing prior to such action becoming final, before an 
     appeals panel that--
       ``(i) shall not include current members of the agency or 
     association's underlying decision-making body that made the 
     adverse decision; and
       ``(ii) is subject to a conflict of interest policy; and
       ``(D) the right to representation by counsel for such an 
     institution during an appeal of the adverse action;''; and
       (D) by striking paragraph (8) and inserting the following:
       ``(8) such agency or association shall make available to 
     the public and the State licensing or authorizing agency, and 
     submit to the Secretary, a summary of agency or association 
     actions, including--
       ``(A) the award of accreditation or reaccreditation of an 
     institution;
       ``(B) final denial, withdrawal, suspension, or termination 
     of accreditation, or placement on probation of an 
     institution, and any findings made in connection with the 
     action taken, together with the official comments of the 
     affected institution; and
       ``(C) any other adverse action taken with respect to an 
     institution.'';
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``, including those 
     regarding distance education'' after ``their 
     responsibilities'';
       (B) by redesignating paragraphs (2) through (6) as 
     paragraphs (5) through (9);
       (C) by inserting after paragraph (1) (as amended by 
     subparagraph (A)) the following:
       ``(2) ensures that the agency or association's on-site 
     evaluation for accreditation or reaccreditation includes 
     review of the Federally required information the institution 
     or program provides its current and prospective students;
       ``(3) monitors the growth of programs at institutions that 
     are experiencing significant enrollment growth;
       ``(4) requires an institution to submit a teach-out plan 
     for approval to the accrediting agency upon the occurrence of 
     any of the following events:
       ``(A) The Department notifies the accrediting agency of an 
     action against the institution pursuant to section 487(d).
       ``(B) The accrediting agency acts to withdraw, terminate, 
     or suspend the accreditation of an institution.
       ``(C) The institution notifies the accrediting agency that 
     the institution intends to cease operations.'';
       (D) in paragraph (8) (as redesignated by subparagraph (B)), 
     by striking ``and'' after the semicolon;
       (E) in subparagraph (9) (as redesignated by subparagraph 
     (B)), by striking the period and inserting ``; and''; and
       (F) by adding at the end the following:
       ``(10) confirms, as a part of the agency or association's 
     review for accreditation or reaccreditation, that the 
     institution has transfer of credit policies--
       ``(A) that are publicly disclosed; and
       ``(B) that include a statement of whether the institution 
     denies a transfer of credit based solely on the accreditation 
     of the sending institution.''; and
       (3) in subsection (g), by adding at the end the following: 
     ``Nothing in this section shall be construed to permit the 
     Secretary to establish any criteria that specifies, defines, 
     or prescribes the standards that accrediting agencies or 
     associations shall use to assess any institution's success 
     with respect to student achievement.''.

     SEC. 492. ADMINISTRATIVE CAPACITY STANDARD.

       Section 498 (20 U.S.C. 1099c) is amended--
       (1) in subsection (d)(1)(B), by inserting ``and'' after the 
     semicolon; and
       (2) by adding at the end the following:
       ``(k) Treatment of Teach-Outs at Additional Locations.--
       ``(1) In general.--A location of a closed institution of 
     higher education shall be eligible as an additional location 
     of an eligible institution of higher education, as defined 
     pursuant to regulations of the Secretary, for the purposes of 
     a teach-out, if such teach-out has been approved by the 
     institution's accrediting agency.
       ``(2) Special rule.--An institution of higher education 
     that conducts a teach-out through

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     the establishment of an additional location described in 
     paragraph (1) shall be permitted to establish a permanent 
     additional location at a closed institution and shall not be 
     required--
       ``(A) to meet the requirements of sections 102(b)(1)(E) and 
     102(c)(1)(C) for such additional location; or
       ``(B) to assume the liabilities of the closed 
     institution.''.

     SEC. 493. PROGRAM REVIEW AND DATA.

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

     SEC. 494. TIMELY INFORMATION ABOUT LOANS.

       (a) In General.--Title IV (20 U.S.C. 1070 et seq.) is 
     further amended by adding at the end the following:

     ``SEC. 499A. ACCESS TO TIMELY INFORMATION ABOUT LOANS.

       ``(a) Regular Bill Providing Pertinent Information About a 
     Loan.--A lender of a loan made, insured, or guaranteed under 
     this title shall provide the borrower of such loan a bill 
     each month or, in the case of a loan payable less frequently 
     than monthly, a bill that corresponds to each payment 
     installment time period, including a clear and conspicuous 
     notice of--
       ``(1) the borrower's principal borrowed;
       ``(2) the borrower's current balance;
       ``(3) the interest rate on such loan;
       ``(4) the amount the borrower has paid in interest;
       ``(5) the amount of additional interest payments the 
     borrower is expected to pay over the life of the loan;
       ``(6) the total amount the borrower has paid for the loan, 
     including the amount the borrower has paid in interest, the 
     amount the borrower has paid in fees, and the amount the 
     borrower has paid against the balance, in a brief, borrower-
     friendly manner;
       ``(7) a description of each fee the borrower has been 
     charged for the current payment period;
       ``(8) the date by which the borrower needs to make a 
     payment in order to avoid additional fees;
       ``(9) the amount of such payment that will be applied to 
     the interest, the balance, and any fees on the loan; and
       ``(10) the lender's address and toll-free phone number for 
     payment and billing error purposes.
       ``(b) Information Provided Before Commencement of 
     Repayment.--A lender of a loan made, insured, or guaranteed 
     under this title shall provide to the borrower of such loan, 
     at least one month before the loan enters repayment, a clear 
     and conspicuous notice of not less than the following 
     information:
       ``(1) The borrower's options, including repayment plans, 
     deferments, forbearances, and discharge options to which the 
     borrower may be entitled.
       ``(2) The conditions under which a borrower may be charged 
     any fee, and the amount of such fee.
       ``(3) The conditions under which a loan may default, and 
     the consequences of default.
       ``(4) Resources, including nonprofit organizations, 
     advocates, and counselors (including the Office of the 
     Ombudsman at the Department), where borrowers can receive 
     advice and assistance, if such resources exist.
       ``(c) Information Provided During Delinquency.--In addition 
     to any other information required under law, a lender of a 
     loan made, insured, or guaranteed under this title shall 
     provide a borrower in delinquency with a clear and 
     conspicuous notice of the date on which the loan will default 
     if no payment is made, the minimum payment that must be made 
     to avoid default, discharge options to which the borrower may 
     be entitled, resources, including nonprofit organizations, 
     advocates, and counselors (including the Office of the 
     Ombudsman at the Department), where borrowers can receive 
     advice and assistance, if such resources exist.
       ``(d) Information Provided During Default.--A lender of a 
     loan made, insured, or guaranteed under this title shall 
     provide a borrower in default, on not less than 2 separate 
     occasions, with a clear and conspicuous notice of not less 
     than the following information:
       ``(1) The options available to the borrower to be removed 
     from default.
       ``(2) The relevant fees and conditions associated with each 
     option.''.

     SEC. 495. AUCTION EVALUATION AND REPORT.

       (a) Evaluation.--If Congress enacts an Act that authorizes 
     the Secretary of Education to carry out a pilot program under 
     which the Secretary establishes a mechanism for an auction of 
     Federal PLUS Loans, then the Comptroller General shall 
     evaluate such pilot program. The evaluation shall determine--
       (1) the extent of the savings to the Federal Government 
     that are generated through the pilot program, compared to the 
     cost the Federal Government would have incurred in operating 
     the parent loan program under section 428B of the Higher 
     Education Act of 1965 in the absence of the pilot program;
       (2) the number of lenders that participated in the pilot 
     program, and the extent to which the pilot program generated 
     competition among lenders to participate in the auctions 
     under the pilot program;
       (3) the effect of the transition to and operation of the 
     pilot program on the ability of--
       (A) lenders participating in the pilot program to originate 
     loans made through the pilot program smoothly and 
     efficiently;
       (B) institutions of higher education participating in the 
     pilot program to disburse loans made through the pilot 
     program smoothly and efficiently; and
       (C) the ability of parents to obtain loans made through the 
     pilot program in a timely and efficient manner;
       (4) the differential impact, if any, of the auction among 
     the States, including between rural and non-rural States; and
       (5) the feasibility of using the mechanism piloted to 
     operate the other loan programs under part B of title IV of 
     the Higher Education Act of 1965.
       (b) Reports.--The Comptroller General shall--
       (1) not later than September 1, 2010, submit to the 
     authorizing committees (as defined in section 103 of the 
     Higher Education Act of 1965 (20 U.S.C. 1003)) a preliminary 
     report regarding the findings of the evaluation described in 
     subsection (a);
       (2) not later than September 1, 2012, submit to the 
     authorizing committees an interim report regarding such 
     findings; and
       (3) not later than September 1, 2014, submit to the 
     authorizing committees a final report regarding such 
     findings.

                    TITLE V--DEVELOPING INSTITUTIONS

     SEC. 501. AUTHORIZED ACTIVITIES.

       Section 503(b) (20 U.S.C. 1101b(b)) is amended--
       (1) by redesignating paragraphs (6) through (14) as 
     paragraphs (8) through (16), respectively;
       (2) in paragraph (5), by inserting ``, including 
     innovative, customized remedial education and English 
     language instruction courses designed to help retain students 
     and move the students rapidly into core courses and through 
     program completion'' before the period at the end;
       (3) by inserting after paragraph (5) the following:
       ``(6) Education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents.
       ``(7) Articulation agreements and student support programs 
     designed to facilitate the transfer from 2-year to 4-year 
     institutions.''; and
       (4) in paragraph (12) (as redesignated by paragraph (1)), 
     by striking ``distance learning academic instruction 
     capabilities'' and inserting ``distance education 
     technologies''.

     SEC. 502. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                   AMERICANS.

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

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

     ``SEC. 511. PROGRAM AUTHORITY AND ELIGIBILITY.

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

     ``SEC. 512. AUTHORIZED ACTIVITIES.

       ``Grants awarded under this part shall be used for 1 or 
     more of the following activities:
       ``(1) Purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes.
       ``(2) Construction, maintenance, renovation, and 
     improvement in classroom, library, laboratory, and other 
     instructional facilities, including purchase or rental of 
     telecommunications technology equipment or services.
       ``(3) Purchase of library books, periodicals, technical and 
     other scientific journals, microfilm, microfiche, and other 
     educational materials, including telecommunications program 
     materials.
       ``(4) Support for needy postbaccalaureate students, 
     including outreach, academic support services, mentoring, 
     scholarships, fellowships, and other financial assistance, to 
     permit the enrollment of such students in postbaccalaureate 
     certificate and degree granting programs.
       ``(5) Support of faculty exchanges, faculty development, 
     faculty research, curriculum development, and academic 
     instruction.

[[Page 19942]]

       ``(6) Creating or improving facilities for Internet or 
     other distance education technologies, including purchase or 
     rental of telecommunications technology equipment or 
     services.
       ``(7) Collaboration with other institutions of higher 
     education to expand postbaccalaureate certificate and degree 
     offerings.
       ``(8) Other activities proposed in the application 
     submitted pursuant to section 513 that are approved by the 
     Secretary as part of the review and acceptance of such 
     application.

     ``SEC. 513. APPLICATION AND DURATION.

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

     SEC. 503. APPLICATIONS.

       Section 521(b)(1)(A) (as redesignated by section 502(a)(2)) 
     (20 U.S.C. 1103(b)(1)(A)) is amended by striking ``subsection 
     (b)'' and inserting ``subsection (c)''.

     SEC. 504. COOPERATIVE ARRANGEMENTS.

       Section 524(a) (as redesignated by section 502(a)(2)) (20 
     U.S.C. 1103c(a)) is amended by striking ``section 503'' and 
     inserting ``sections 503 and 512''.

     SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

       Section 528(a) (as redesignated by section 502(a)(2)) (20 
     U.S.C. 1103g(a)) is amended--
       (1) by inserting ``part A of'' after ``carry out'';
       (2) by striking ``$62,500,000 for fiscal year 1999'' and 
     all that follows through the period and inserting ``such sums 
     as may be necessary for fiscal year 2008 and each of the 5 
     succeeding fiscal years.'';
       (3) by striking ``(a)  Authorizations.--'' and inserting 
     the following:
       ``(a) Authorizations.--
       ``(1) Part a.--There are''; and
       (4) by adding at the end the following:
       ``(2) Part b.--There are authorized to be appropriated to 
     carry out part B of this title such sums as may be necessary 
     for fiscal year 2008 and each of the 5 succeeding fiscal 
     years.''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

     SEC. 601. FINDINGS.

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

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

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

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

       Section 604 (20 U.S.C. 1124) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)--
       (i) by redesignating subparagraphs (I) through (M) as 
     subparagraphs (J) through (N), respectively; and
       (ii) by inserting after subparagraph (H) the following:
       ``(I) providing subgrants to undergraduate students for 
     educational programs abroad that--
       ``(i) are closely linked to the overall goals of the 
     program for which the grant is awarded; and
       ``(ii) have the purpose of promoting foreign language 
     fluency and knowledge of foreign cultures;''; and
       (B) in paragraph (7)--
       (i) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (D), by striking the period at the end 
     and inserting a semicolon; and
       (iii) by adding at the end the following:
       ``(E) a description of how the applicant will provide 
     information to students regarding federally funded 
     scholarship programs in related areas;
       ``(F) an explanation of how the activities funded by the 
     grant will reflect diverse perspectives and a wide range of 
     views and generate debate on world regions and international 
     affairs, where applicable;
       ``(G) a description of how the applicant will address 
     disputes regarding whether the activities funded under the 
     application reflect diverse perspectives and a wide range of 
     views; and
       ``(H) a description of how the applicant will encourage 
     service in areas of national need as identified by the 
     Secretary.''; and
       (2) in subsection (c)--
       (A) by striking ``Funding Support.--The Secretary'' and 
     inserting ``Funding Support.--
       ``(1) The secretary.--The Secretary'';
       (B) by striking ``10'' and inserting ``20''; and
       (C) by adding at the end the following:
       ``(2) Grantees.--Of the total amount of grant funds awarded 
     to a grantee under this section, the grantee may use not more 
     than 10 percent of such funds for the activity described in 
     subsection (a)(2)(I).''.

     SEC. 604. RESEARCH; STUDIES.

       Section 605(a) (20 U.S.C. 1125(a)) is amended--
       (1) in paragraph (8), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(10) evaluation of the extent to which programs assisted 
     under this title reflect diverse perspectives and a wide 
     range of views and generate debate on world regions and 
     international affairs;
       ``(11) the systematic collection, analysis, and 
     dissemination of data that contribute to achieving the 
     purposes of this part; and

[[Page 19943]]

       ``(12) support for programs or activities to make data 
     collected, analyzed, or disseminated under this section 
     publicly available and easy to understand.''.

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

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

     SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS.

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

     SEC. 607. AMERICAN OVERSEAS RESEARCH CENTERS.

       Section 609 (20 U.S.C. 1128a) is amended by adding at the 
     end the following:
       ``(e) Application.--Each center desiring a grant under this 
     section shall submit an application to the Secretary at such 
     time, in such manner, and accompanied by such information and 
     assurances as the Secretary may require.''.

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

       Section 610 (20 U.S.C. 1128b) is amended by striking 
     ``$80,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2008 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 609. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.

       Section 612(f)(3) (20 U.S.C. 1130-1(f)(3)) is amended by 
     inserting ``, and that diverse perspectives will be made 
     available to students in programs under this section'' before 
     the semicolon.

     SEC. 610. EDUCATION AND TRAINING PROGRAMS.

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

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

       Section 614 (20 U.S.C. 1130b) is amended--
       (1) in subsection (a), by striking ``$11,000,000 for fiscal 
     year 1999'' and all that follows through ``fiscal years'' and 
     inserting ``such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years''; and
       (2) in subsection (b), by striking ``$7,000,000 for fiscal 
     year 1999'' and all that follows through ``fiscal years,'' 
     and inserting ``such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years''.

     SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT 
                   PROGRAM.

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

     SEC. 613. INSTITUTIONAL DEVELOPMENT.

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

     SEC. 614. STUDY ABROAD PROGRAM.

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

     SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.

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

     SEC. 616. INTERNSHIPS.

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

     SEC. 617. FINANCIAL ASSISTANCE.

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

     ``SEC. 626. FINANCIAL ASSISTANCE.

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

     SEC. 618. REPORT.

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

[[Page 19944]]



     SEC. 619. GIFTS AND DONATIONS.

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

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

       Section 629 (as redesignated by section 617(1)) (20 U.S.C. 
     1131f) is amended by striking ``$10,000,000 for fiscal year 
     1999'' and all that follows through the period and inserting 
     ``such sums as may be necessary for fiscal year 2008 and each 
     of the 5 succeeding fiscal years.''.

     SEC. 621. DEFINITIONS.

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

     SEC. 622. ASSESSMENT AND ENFORCEMENT.

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

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

       ``(a) In General.--The Secretary is authorized to assess 
     and ensure compliance with all the conditions and terms of 
     grants provided under this title. If a complaint regarding 
     activities funded under this title is not resolved under the 
     process outlined in the relevant grantee's application, such 
     complaint shall be filed with the Department and reviewed by 
     the Secretary. The Secretary shall take the review of such 
     complaints into account when determining the renewal of 
     grants.
       ``(b) Rule of Construction.--Nothing in this title shall be 
     construed to authorize the Secretary to mandate, direct, or 
     control an institution of higher education's specific 
     instructional content, curriculum, or program of instruction.

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

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

     ``SEC. 634. BIENNIAL REPORT.

       ``The Secretary shall, in consultation and collaboration 
     with the Secretary of State, the Secretary of Defense, and 
     the heads of other relevant Federal agencies, submit a 
     biennial report that identifies areas of national need in 
     foreign language, area, and international studies as such 
     studies relate to government, education, business, and 
     nonprofit needs, and a plan to address those needs. The 
     report shall be provided to the authorizing committees and 
     made available to the public.''.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

     SEC. 701. PURPOSE.

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

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

       Section 702(a)(1) (20 U.S.C. 1134a(a)(1)) is amended to 
     read as follows:
       ``(1) Appointment.--
       ``(A) In general.--The Secretary shall appoint a Jacob K. 
     Javits Fellows Program Fellowship Board (referred to in this 
     subpart as the `Board') consisting of 9 individuals 
     representative of both public and private institutions of 
     higher education who are especially qualified to serve on the 
     Board.
       ``(B) Qualifications.--In making appointments under 
     subparagraph (A), the Secretary shall--
       ``(i) give due consideration to the appointment of 
     individuals who are highly respected in the academic 
     community;
       ``(ii) assure that individuals appointed to the Board are 
     broadly representative of a range of disciplines in graduate 
     education in arts, humanities, and social sciences;
       ``(iii) appoint members to represent the various geographic 
     regions of the United States; and
       ``(iv) include representatives from minority institutions, 
     as defined in section 365.''.

     SEC. 703. STIPENDS.

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

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

       Section 705 (20 U.S.C. 1134d) is amended by striking 
     ``$30,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2008 and each of the 5 succeeding 
     fiscal years to carry out this subpart.''.

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

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

     SEC. 706. AWARDS TO GRADUATE STUDENTS.

       Section 714 (20 U.S.C. 1135c) is amended--
       (1) in subsection (b)--
       (A) by striking ``1999-2000'' and inserting ``2008-2009''; 
     and
       (B) by striking ``graduate fellowships'' and inserting 
     ``Graduate Research Fellowship Program''; and
       (2) in subsection (c)--
       (A) by striking ``716(a)'' and inserting ``715(a)''; and
       (B) by striking ``714(b)(2)'' and inserting ``713(b)(2)''.

     SEC. 707. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION.

       Section 715(a)(1) (20 U.S.C. 1135d(a)(1)) is amended--
       (1) by striking ``1999-2000'' and inserting ``2008-2009''; 
     and
       (2) by striking ``1998-1999'' and inserting ``2007-2008''.

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

       Section 716 (20 U.S.C. 1135e) is amended by striking 
     ``$35,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2008 and each of the 5 succeeding 
     fiscal years to carry out this subpart.''.

     SEC. 709. LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

       Section 721 (20 U.S.C. 1136) is amended--
       (1) in subsection (a)--
       (A) by inserting ``secondary school and'' after 
     ``disadvantaged''; and
       (B) by inserting ``and admission to law practice'' before 
     the period at the end;
       (2) in the matter preceding paragraph (1) of subsection 
     (b), by inserting ``secondary school student or'' before 
     ``college student'';
       (3) in subsection (c)--
       (A) in paragraph (1), by inserting ``secondary school and'' 
     before ``college students'';
       (B) by striking paragraph (2) and inserting the following:
       ``(2) to prepare such students for successful completion of 
     a baccalaureate degree and for study at accredited law 
     schools, and to assist them with the development of 
     analytical skills, writing skills, and study methods to 
     enhance the students' success and promote the students' 
     admission to and completion of law school;'';
       (C) in paragraph (4), by striking ``and'' after the 
     semicolon;
       (D) by striking paragraph (5) and inserting the following:
       ``(4) to motivate and prepare such students--
       ``(A) with respect to law school studies and practice in 
     low-income communities; and
       ``(B) to provide legal services to low-income individuals 
     and families; and;''; and
       (E) by adding at the end the following:
       ``(6) to award Thurgood Marshall Fellowships to eligible 
     law school students--
       ``(A) who participated in summer institutes under 
     subsection (d)(6) and who are enrolled in an accredited law 
     school; or
       ``(B) who have successfully completed summer institute 
     programs comparable to the summer institutes under subsection 
     (d) that are certified by the Council on Legal Education 
     Opportunity.'';
       (4) in subsection (d)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``pre-college programs, undergraduate'' before ``pre-law'';
       (B) in paragraph (1)--
       (i) in subparagraph (B), by inserting ``law school'' before 
     ``graduation''; and
       (ii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) pre-college and undergraduate preparatory courses in 
     analytical and writing skills, study methods, and curriculum 
     selection;'';

[[Page 19945]]

       (C) by redesignating paragraphs (2) through (6) as 
     paragraphs (3) through (7), respectively;
       (D) by inserting after paragraph (1) the following:
       ``(2) summer academic programs for secondary school 
     students who have expressed interest in a career in the 
     law;''; and
       (E) in paragraph (7) (as redesignated by subparagraph (C)), 
     by inserting ``and Associates'' after ``Thurgood Marshall 
     Fellows'';
       (5) in subsection (e)(1), by inserting ``, including before 
     and during undergraduate study'' before the semicolon;
       (6) in subsection (f)--
       (A) by inserting ``national and State bar associations,'' 
     after ``agencies and organizations,''; and
       (B) by striking ``and organizations.'' and inserting 
     ``organizations, and associations.'';
       (7) by striking subsection (g) and inserting the following:
       ``(g) Fellowships and Stipends.--The Secretary shall 
     annually establish the maximum fellowship to be awarded, and 
     stipend to be paid (including allowances for participant 
     travel and for the travel of the dependents of the 
     participant), to Thurgood Marshall Fellows or Associates for 
     the period of participation in summer institutes, midyear 
     seminars, and bar preparation seminars. A Fellow or Associate 
     may be eligible for such a fellowship or stipend only if the 
     Thurgood Marshall Fellow or Associate maintains satisfactory 
     academic progress toward the Juris Doctor or Bachelor of Laws 
     degree, as determined by the respective institutions (except 
     with respect to a law school graduate enrolled in a bar 
     preparation course).''; and
       (8) in subsection (h), by striking ``$5,000,000 for fiscal 
     year 1999'' and all that follows through the period at the 
     end and inserting ``such sums as may be necessary for fiscal 
     year 2008 and for each of the 5 succeeding fiscal years''.

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

       Section 741 (20 U.S.C. 1138) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (3) and inserting the following:
       ``(3) the establishment and continuation of institutions, 
     programs, consortia, collaborations, and other joint efforts 
     based on the technology of communications, including those 
     efforts that utilize distance education and technological 
     advancements to educate and train postsecondary students 
     (including health professionals serving medically underserved 
     populations);'';
       (B) in paragraph (7), by striking ``and'' after the 
     semicolon;
       (C) in paragraph (8), by striking the period at the end and 
     inserting a semicolon; and
       (D) by adding at the end the following:
       ``(9) the introduction of reforms in remedial education, 
     including English language instruction, to customize remedial 
     courses to student goals and help students progress rapidly 
     from remedial courses into core courses and through program 
     completion; and
       ``(10) the creation of consortia that join diverse 
     institutions of higher education to design and offer 
     curricular and co-curricular interdisciplinary programs at 
     the undergraduate and graduate levels, sustained for not less 
     than a 5 year period, that--
       ``(A) focus on poverty and human capability; and
       ``(B) include--
       ``(i) a service-learning component; and
       ``(ii) the delivery of educational services through 
     informational resource centers, summer institutes, midyear 
     seminars, and other educational activities that stress the 
     effects of poverty and how poverty can be alleviated through 
     different career paths.''; and
       (2) by adding at the end the following:
       ``(c) Project GRAD.--
       ``(1) Purposes.--The purposes of this subsection are--
       ``(A) to provide support and assistance to programs 
     implementing integrated education reform services in order to 
     improve secondary school graduation, college attendance, and 
     college completion rates for at-risk students; and
       ``(B) to promote the establishment of new programs to 
     implement such integrated education reform services.
       ``(2) Definitions.--In this subsection:
       ``(A) At-risk.--The term `at-risk' has the same meaning 
     given such term in section 1432 of the Elementary and 
     Secondary Education Act of 1965.
       ``(B) Feeder pattern.--The term `feeder pattern' means a 
     secondary school and the elementary schools and middle 
     schools that channel students into that secondary school.
       ``(3) Grant authorized.--The Secretary is authorized to 
     award a grant to Project GRAD USA (referred to in this 
     subsection as the `grantee'), a nonprofit educational 
     organization that has as its primary purpose the improvement 
     of secondary school graduation, college attendance, and 
     college completion rates for at-risk students, to implement 
     and sustain the integrated education reform program at 
     existing Project GRAD sites, and to promote the expansion of 
     the Project GRAD program to new sites.
       ``(4) Requirements of grant agreement.--The Secretary shall 
     enter into an agreement with the grantee that requires that 
     the grantee shall--
       ``(A) enter into subcontracts with nonprofit educational 
     organizations that serve a substantial number or percentage 
     of at-risk students (referred to in this subsection as 
     `subcontractors'), under which the subcontractors agree to 
     implement the Project GRAD program and provide matching funds 
     for such programs; and
       ``(B) directly carry out--
       ``(i) activities to implement and sustain the literacy, 
     mathematics, classroom management, social service, and 
     college access components of the Project GRAD program;
       ``(ii) activities for the purpose of implementing new 
     Project GRAD program sites;
       ``(iii) activities to support, evaluate, and consistently 
     improve the Project GRAD program;
       ``(iv) activities for the purpose of promoting greater 
     public awareness of integrated education reform services to 
     improve secondary school graduation, college attendance, and 
     college completion rates for at-risk students; and
       ``(v) other activities directly related to improving 
     secondary school graduation, college attendance, and college 
     completion rates for at-risk students.
       ``(5) Grantee contribution and matching requirement.--
       ``(A) In general.--The grantee shall provide funds to each 
     subcontractor based on the number of students served by the 
     subcontractor in the Project GRAD program, adjusted to take 
     into consideration--
       ``(i) the resources available in the area where the 
     subcontractor will implement the Project GRAD program; and
       ``(ii) the need for the Project GRAD program in such area 
     to improve student outcomes, including reading and 
     mathematics achievement and, where applicable, secondary 
     school graduation, college attendance, and college completion 
     rates.
       ``(B) Matching requirement.--Each subcontractor shall 
     provide funds for the Project GRAD program in an amount that 
     is equal to or greater than the amount received by the 
     subcontractor from the grantee. Such matching funds may be 
     provided in cash or in-kind, fairly evaluated.
       ``(6) Evaluation.--The Secretary shall select an 
     independent entity to evaluate, every 3 years, the 
     performance of students who participate in a Project GRAD 
     program under this subsection.
       ``(d) Center for Best Practices to Support Single Parent 
     Students.--
       ``(1) Program authorized.--The Secretary is authorized to 
     award 1 grant or contract to an institution of higher 
     education to enable such institution to establish and 
     maintain a center to study and develop best practices for 
     institutions of higher education to support single parents 
     who are also students attending such institutions.
       ``(2) Institution requirements.--The Secretary shall award 
     the grant or contract under this subsection to a 4-year 
     institution of higher education that has demonstrated 
     expertise in the development of programs to assist single 
     parents who are students at institutions of higher education, 
     as shown by the institution's development of a variety of 
     targeted services to such students, including on-campus 
     housing, child care, counseling, advising, internship 
     opportunities, financial aid, and financial aid counseling 
     and assistance.
       ``(3) Center activities.--The center funded under this 
     section shall--
       ``(A) assist institutions implementing innovative programs 
     that support single parents pursuing higher education;
       ``(B) study and develop an evaluation protocol for such 
     programs that includes quantitative and qualitative 
     methodologies;
       ``(C) provide appropriate technical assistance regarding 
     the replication, evaluation, and continuous improvement of 
     such programs; and
       ``(D) develop and disseminate best practices for such 
     programs.
       ``(e) Understanding the Federal Regulatory Impact on Higher 
     Education.--
       ``(1) Purpose.--The purpose of this subsection is to help 
     institutions of higher education understand the regulatory 
     impact of the Federal Government on such institutions, in 
     order to raise awareness of institutional legal obligations 
     and provide information to improve compliance with, and to 
     reduce the duplication and inefficiency of, Federal 
     regulations.
       ``(2) Program authorized.--The Secretary is authorized to 
     award 1 grant or contract to an institution of higher 
     education to enable the institution to carry out the 
     activities described in the agreement under paragraph (4).
       ``(3) Institution requirements.--The Secretary shall award 
     the grant or contract under this subsection to an institution 
     of higher education that has demonstrated expertise in--
       ``(A) reviewing Federal higher education regulations;
       ``(B) maintaining a clearinghouse of compliance training 
     materials; and
       ``(C) explaining the impact of such regulations to 
     institutions of higher education through a comprehensive and 
     freely accessible website.
       ``(4) Requirements of agreement.--As a condition of 
     receiving a grant or contract under this subsection, the 
     institution of higher education shall enter into an agreement 
     with the Secretary that shall require the institution to--
       ``(A) monitor Federal regulations, including notices of 
     proposed rulemaking, for their impact or potential impact on 
     higher education;
       ``(B) provide a succinct description of each regulation or 
     proposed regulation that is relevant to higher education; and
       ``(C) maintain a website providing information on Federal 
     regulations that is easy to use, searchable, and updated 
     regularly.
       ``(f) Scholarship Program for Family Members of Veterans or 
     Members of the Military.--
       ``(1) Authorization.--The Secretary shall contract with a 
     nonprofit organization with

[[Page 19946]]

     demonstrated experience in carrying out the activities 
     described in this subsection to carry out a program to 
     provide postsecondary education scholarships for eligible 
     students.
       ``(2) Eligible students.--In this subsection, the term 
     `eligible student' means an individual who is--
       ``(A)(i) a dependent student who is a child of--
       ``(I) an individual who is--

       ``(aa) serving on active duty during a war or other 
     military operation or national emergency (as defined in 
     section 481); or
       ``(bb) performing qualifying National Guard duty during a 
     war or other military operation or national emergency (as 
     defined in section 481); or

       ``(II) a veteran who died while serving or performing, as 
     described in subclause (I), since September 11, 2001, or has 
     been disabled while serving or performing, as described in 
     subclause (I), as a result of such event; or
       ``(ii) an independent student who is a spouse of--
       ``(I) an individual who is--

       ``(aa) serving on active duty during a war or other 
     military operation or national emergency (as defined in 
     section 481); or
       ``(bb) performing qualifying National Guard duty during a 
     war or other military operation or national emergency (as 
     defined in section 481); or

       ``(II) a veteran who died while serving or performing, as 
     described in subclause (I), since September 11, 2001, or has 
     been disabled while serving or performing, as described in 
     subclause (I), as a result of such event; and
       ``(B) enrolled as a full-time or part-time student at an 
     institution of higher education (as defined in section 102).
       ``(3) Awarding of scholarships.--Scholarships awarded under 
     this subsection shall be awarded based on need with priority 
     given to eligible students who are eligible to receive 
     Federal Pell Grants under subpart 1 of part A of title IV.
       ``(4) Maximum scholarship amount.--The maximum scholarship 
     amount awarded to an eligible student under this subsection 
     for an academic year shall be the lesser of--
       ``(A) the difference between the eligible student's cost of 
     attendance (as defined in section 472) and any non-loan based 
     aid such student receives; or
       ``(B) $5,000.
       ``(5) Amounts for scholarships.--100 percent of amounts 
     appropriated to carry out this subsection shall be used for 
     scholarships awarded under this subsection.''.

     SEC. 711. SPECIAL PROJECTS.

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

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

       Section 745 (20 U.S.C. 1138d) is amended by striking 
     ``$30,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2008 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 713. REPEAL OF THE URBAN COMMUNITY SERVICE PROGRAM.

       Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.

     SEC. 714. GRANTS FOR STUDENTS WITH DISABILITIES.

       (a) Grants Authorized for Demonstration Projects to Ensure 
     Students With Disabilities Receive a Quality Higher 
     Education.--Section 762 (20 U.S.C. 1140a) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) in subparagraph (A), by striking ``to teach students 
     with disabilities'' and inserting ``to teach and meet the 
     academic and programmatic needs of students with disabilities 
     in order to improve retention and completion of postsecondary 
     education'';
       (ii) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (F), respectively;
       (iii) by inserting after subparagraph (A) the following:
       ``(B) Effective transition practices.--The development of 
     innovative and effective teaching methods and strategies to 
     ensure the successful transition of students with 
     disabilities from secondary school to postsecondary 
     education.'';
       (iv) in subparagraph (C), as redesignated by clause (ii), 
     by striking the period at the end and inserting ``, including 
     data on the postsecondary education of and impact on 
     subsequent employment of students with disabilities. Such 
     research, information, and data shall be made publicly 
     available and accessible.'';
       (v) by inserting after subparagraph (C), as redesignated by 
     clause (ii), the following:
       ``(D) Distance learning.--The development of innovative and 
     effective teaching methods and strategies to provide faculty 
     and administrators with the ability to provide accessible 
     distance education programs or classes that would enhance 
     access of students with disabilities to higher education, 
     including the use of accessible curriculum and electronic 
     communication for instruction and advisement.
       ``(E) Disability career pathways.--
       ``(i) In general.--Training and providing support to 
     secondary and postsecondary staff with respect to disability-
     related fields to--

       ``(I) encourage interest and participation in such fields, 
     among students with disabilities and other students;
       ``(II) enhance awareness and understanding of such fields 
     among such students;
       ``(III) provide educational opportunities in such fields 
     among such students;
       ``(IV) teach practical skills related to such fields among 
     such students; and
       ``(V) offer work-based opportunities in such fields among 
     such students.

       ``(ii) Development.--The training and support described in 
     clause (i) may include developing means to offer students 
     credit-bearing, college-level coursework, and career and 
     educational counseling.''; and
       (vi) by adding at the end the following:
       ``(G) Accessibility of education.--Making postsecondary 
     education more accessible to students with disabilities 
     through curriculum development.''; and
       (B) in paragraph (3), by striking ``subparagraphs (A) 
     through (C)'' and inserting ``subparagraphs (A) through 
     (G)''; and
       (2) by adding at the end the following:
       ``(d) Report.--Not later than 3 years after the date of 
     enactment of the Higher Education Amendments of 2007, the 
     Secretary shall prepare and disseminate a report reviewing 
     the activities of the demonstration projects authorized under 
     this subpart and providing guidance and recommendations on 
     how successful projects can be replicated.''.
       (b) Transition Programs for Students With Intellectual 
     Disabilities Into Higher Education; Coordinating Center.--
     Part D of title VII (20 U.S.C. 1140 et seq.) is further 
     amended--
       (1) in the part heading, by striking ``DEMONSTRATION'';
       (2) by inserting after the part heading the following:

                ``Subpart 1--Quality Higher Education'';

     and
       (3) by adding at the end the following:

    ``Subpart 2--Transition Programs for Students With Intellectual 
        Disabilities Into Higher Education; Coordinating Center

     ``SEC. 771. PURPOSE.

       ``It is the purpose of this subpart to support model 
     demonstration programs that promote the successful transition 
     of students with intellectual disabilities into higher 
     education.

     ``SEC. 772. DEFINITIONS.

       ``In this subpart:
       ``(1) Comprehensive transition and postsecondary program 
     for students with intellectual disabilities.--The term 
     `comprehensive transition and postsecondary program for 
     students with intellectual disabilities' means a degree, 
     certificate, or nondegree program offered by an institution 
     of higher education that--
       ``(A) is designed for students with intellectual 
     disabilities who seek to continue academic, vocational, or 
     independent living instruction at the institution in order to 
     prepare for gainful employment;
       ``(B) includes an advising and curriculum structure; and
       ``(C) requires the enrollment of the student (through 
     enrollment in credit-bearing courses, auditing or 
     participating in courses, participating in internships, or 
     enrollment in noncredit, nondegree courses) in the equivalent 
     of not less than a half-time course of study, as determined 
     by the institution.
       ``(2) Student with an intellectual disability.--The term 
     `student with an intellectual disability' means a student 
     whose mental retardation or other significant cognitive 
     impairment substantially impacts the student's intellectual 
     and cognitive functioning.

     ``SEC. 773. MODEL COMPREHENSIVE TRANSITION AND POSTSECONDARY 
                   PROGRAMS FOR STUDENTS WITH INTELLECTUAL 
                   DISABILITIES.

       ``(a) Grants Authorized.--
       ``(1) In general.--The Secretary shall annually award 
     grants, on a competitive basis, to institutions of higher 
     education (or consortia of institutions of higher education), 
     to create or expand high-quality, inclusive model 
     comprehensive transition and postsecondary programs for 
     students with intellectual disabilities.
       ``(2) Number and duration of grants.--The Secretary shall 
     award not less than 10 grants per year under this section, 
     and each grant awarded under this subsection shall be for a 
     period of 5 years.

[[Page 19947]]

       ``(b) Application.--An institution of higher education (or 
     a consortium) 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.
       ``(c) Preference.--In awarding grants under this section, 
     the Secretary shall give preference to institutions of higher 
     education (or consortia) that--
       ``(1) will carry out a model program under the grant in a 
     State that does not already have a comprehensive transition 
     and postsecondary program for students with intellectual 
     disabilities; or
       ``(2) in the application submitted under subsection (b), 
     agree to incorporate 1 or more the following elements into 
     the model programs carried out under the grant:
       ``(A) The formation of a partnership with any relevant 
     agency serving students with intellectual disabilities, such 
     as a vocational rehabilitation agency.
       ``(B) In the case of an institution of higher education 
     that provides institutionally-owned or operated housing for 
     students attending the institution, the integration of 
     students with intellectual disabilities into such housing.
       ``(C) The involvement of students attending the institution 
     of higher education who are studying special education, 
     general education, vocational rehabilitation, assistive 
     technology, or related fields in the model program carried 
     out under the grant.
       ``(d) Use of Funds.--An institution of higher education (or 
     consortium) receiving a grant under this section shall use 
     the grant funds to establish a model comprehensive transition 
     and postsecondary program for students with intellectual 
     disabilities that--
       ``(1) serves students with intellectual disabilities, 
     including students with intellectual disabilities who are no 
     longer eligible for special education and related services 
     under the Individuals with Disabilities Education Act;
       ``(2) provides individual supports and services for the 
     academic and social inclusion of students with intellectual 
     disabilities in academic courses, extracurricular activities, 
     and other aspects of the institution of higher education's 
     regular postsecondary program;
       ``(3) with respect to the students with intellectual 
     disabilities participating in the model program, provides a 
     focus on--
       ``(A) academic enrichment;
       ``(B) socialization;
       ``(C) independent living, including self-advocacy skills; 
     and
       ``(D) integrated work experiences and career skills that 
     lead to gainful employment;
       ``(4) integrates person-centered planning in the 
     development of the course of study for each student with an 
     intellectual disability participating in the model program;
       ``(5) participates with the coordinating center established 
     under section 774 in the evaluation of the model program;
       ``(6) partners with 1 or more local educational agencies to 
     support students with intellectual disabilities participating 
     in the model program who are still eligible for special 
     education and related services under such Act, including 
     regarding the utilization of funds available under part B of 
     the Individuals with Disabilities Education Act for such 
     students;
       ``(7) plans for the sustainability of the model program 
     after the end of the grant period; and
       ``(8) creates and offers a meaningful credential for 
     students with intellectual disabilities upon the completion 
     of the model program.
       ``(e) Matching Requirement.--An institution of higher 
     education that receives a grant under this section shall 
     provide toward the cost of the model comprehensive transition 
     and postsecondary program for students with intellectual 
     disabilities carried out under the grant, matching funds, 
     which may be provided in cash or in-kind, in an amount not 
     less than 25 percent of the amount of such grant funds.
       ``(f) Report.--Not later than 3 years after the date of 
     enactment of the Higher Education Amendments of 2007, the 
     Secretary shall prepare and disseminate a report reviewing 
     the activities of the model comprehensive transition and 
     postsecondary programs for students with intellectual 
     disabilities authorized under this subpart and providing 
     guidance and recommendations on how successful programs can 
     be replicated.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary.

     ``SEC. 774. COORDINATING CENTER FOR TECHNICAL ASSISTANCE, 
                   EVALUATION, AND DEVELOPMENT OF ACCREDITATION 
                   STANDARDS.

       ``(a) In General.--
       ``(1) Award.--The Secretary shall, on a competitive basis, 
     enter into a cooperative agreement with an eligible entity, 
     for the purpose of establishing a coordinating center for 
     technical assistance, evaluation, and development of 
     accreditation standards for institutions of higher education 
     that offer inclusive model comprehensive transition and 
     postsecondary programs for students with intellectual 
     disabilities.
       ``(2) Duration.--The cooperative agreement under this 
     section shall be for a period of 5 years.
       ``(b) Requirements of Cooperative Agreement.--The eligible 
     entity entering into a cooperative agreement under this 
     section shall establish and maintain a center that shall--
       ``(1) serve as the technical assistance entity for all 
     model comprehensive transition and postsecondary programs for 
     students with intellectual disabilities assisted under 
     section 773;
       ``(2) provide technical assistance regarding the 
     development, evaluation, and continuous improvement of such 
     programs;
       ``(3) develop an evaluation protocol for such programs that 
     includes qualitative and quantitative methodology measuring 
     student outcomes and program strengths in the areas of 
     academic enrichment, socialization, independent living, and 
     competitive or supported employment;
       ``(4) assist recipients of grants under section 773 in 
     efforts to award a meaningful credential to students with 
     intellectual disabilities upon the completion of such 
     programs, which credential takes into consideration unique 
     State factors;
       ``(5) develop model criteria, standards, and procedures to 
     be used in accrediting such programs that--
       ``(A) include, in the development of the model criteria, 
     standards, and procedures for such programs, the 
     participation of--
       ``(i) an expert in higher education;
       ``(ii) an expert in special education;
       ``(iii) a disability organization that represents students 
     with intellectual disabilities; and
       ``(iv) a State, regional, or national accrediting agency or 
     association recognized by the Secretary under subpart 2 of 
     part H of title IV; and
       ``(B) define the necessary components of such programs, 
     such as--
       ``(i) academic, vocational, social, and independent living 
     skills;
       ``(ii) evaluation of student progress;
       ``(iii) program administration and evaluation;
       ``(iv) student eligibility; and
       ``(v) issues regarding the equivalency of a student's 
     participation in such programs to semester, trimester, 
     quarter, credit, or clock hours at an institution of higher 
     education, as the case may be;
       ``(6) analyze possible funding streams for such programs 
     and provide recommendations regarding the funding streams;
       ``(7) develop model memoranda of agreement between 
     institutions of higher education and agencies providing 
     funding for such programs;
       ``(8) develop mechanisms for regular communication between 
     the recipients of grants under section 773 regarding such 
     programs; and
       ``(9) host a meeting of all recipients of grants under 
     section 773 not less often than once a year.
       ``(c) Definition of Eligible Entity.--In this section, the 
     term `eligible entity' means an entity, or a partnership of 
     entities, that has demonstrated expertise in the fields of 
     higher education, students with intellectual disabilities, 
     the development of comprehensive transition and postsecondary 
     programs for students with intellectual disabilities, and 
     evaluation.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary.''.
       (c) Conforming Amendments.--Part D of title VII (20 U.S.C. 
     1140 et seq.) is further amended--
       (1) in section 761, by striking ``part'' and inserting 
     ``subpart'';
       (2) in section 762 (as amended by subsection (a)), by 
     striking ``part'' each place the term appears and inserting 
     ``subpart'';
       (3) in section 763, by striking ``part'' both places the 
     term appears and inserting ``subpart'';
       (4) in section 764, by striking ``part'' and inserting 
     ``subpart''; and
       (5) in section 765, by striking ``part'' and inserting 
     ``subpart''.

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

       Section 763 (as amended in section 714(c)(3)) (20 U.S.C. 
     1140b) is further amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) a description of how such institution plans to 
     address the activities allowed under this subpart;'';
       (2) in paragraph (2), by striking ``and'' after the 
     semicolon;
       (3) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (4) by adding at the end the following:
       ``(4) a description of the extent to which the institution 
     will work to replicate the research based and best practices 
     of institutions of higher education with demonstrated success 
     in serving students with disabilities.''.

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

       Section 765 (20 U.S.C. 1140d) is amended by striking 
     ``$10,000,000 for fiscal year 1999'' and all that follows 
     through the period and inserting ``such sums as may be 
     necessary for fiscal year 2008 and each of the 5 succeeding 
     fiscal years.''.

     SEC. 717. RESEARCH GRANTS.

       Title VII (20 U.S.C. 1133 et seq.) is further amended by 
     adding at the end the following:

                       ``PART E--RESEARCH GRANTS

     ``SEC. 781. RESEARCH GRANTS.

       ``(a) Grants Authorized.--The Secretary is authorized to 
     award grants, on a competitive basis, to eligible entities to 
     enable the eligible entities to develop or improve valid and 
     reliable measures of student achievement for use by 
     institutions of higher education to measure and evaluate 
     learning in higher education.
       ``(b) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) an institution of higher education;
       ``(B) a State agency responsible for higher education;

[[Page 19948]]

       ``(C) a recognized higher education accrediting agency or 
     an organization of higher education accreditors;
       ``(D) an eligible applicant described in section 174(c) of 
     the Education Sciences Reform Act of 2002; and
       ``(E) a consortium of any combination of entities described 
     in subparagraphs (A) through (D).
       ``(c) Application.--
       ``(1) In general.--Each eligible entity that desires a 
     grant under this part shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       ``(2) Contents.--Each application submitted under 
     subsection (a) shall include a description of how the 
     eligible entity--
       ``(A) will work with relevant experts, including 
     psychometricians, research experts, institutions, 
     associations, and other qualified individuals as determined 
     appropriate by the eligible entity;
       ``(B) will reach a broad and diverse range of audiences;
       ``(C) has participated in work in improving postsecondary 
     education;
       ``(D) has participated in work in developing or improving 
     assessments to measure student achievement;
       ``(E) includes faculty, to the extent practicable, in the 
     development of any assessments or measures of student 
     achievement; and
       ``(F) will focus on program specific measures of student 
     achievement generally applicable to an entire--
       ``(i) institution of higher education; or
       ``(ii) State system of higher education.
       ``(d) Award Basis.--In awarding grants under this section, 
     the Secretary shall take into consideration--
       ``(1) the quality of an application for a grant under this 
     section;
       ``(2) the distribution of the grants to different--
       ``(A) geographic regions;
       ``(B) types of institutions of higher education; and
       ``(C) higher education accreditors.
       ``(e) Use of Funds.--Each eligible entity receiving a grant 
     under this section may use the grant funds--
       ``(1) to enable the eligible entity to improve the quality, 
     validity, and reliability of existing assessments used by 
     institutions of higher education;
       ``(2) to develop measures of student achievement using 
     multiple measures of student achievement from multiple 
     sources;
       ``(3) to measure improvement in student achievement over 
     time;
       ``(4) to evaluate student achievement;
       ``(5) to develop models of effective practices; and
       ``(6) for a pilot or demonstration project of measures of 
     student achievement.
       ``(f) Matching Requirement.--An eligible entity described 
     in subparagraph (A), (B), or (C) of subsection (b)(1) that 
     receives a grant under this section shall provide for each 
     fiscal year, from non-Federal sources, an amount (which may 
     be provided in cash or in kind), to carry out the activities 
     supported by the grant, equal to 50 percent of the amount 
     received for the fiscal year under the grant.
       ``(g) Supplement, Not Supplant.--Grant funds provided under 
     this section shall be used to supplement, not supplant, other 
     Federal or State funds.
       ``(h) Report.--
       ``(1) Report.--The Secretary shall provide an annual report 
     to Congress on the implementation of the grant program 
     assisted under this section.
       ``(2) Content.--The report shall include--
       ``(A) information regarding the development or improvement 
     of scientifically valid and reliable measures of student 
     achievement;
       ``(B) a description of the assessments or other measures 
     developed by eligible entities;
       ``(C) the results of any pilot or demonstration projects 
     assisted under this section; and
       ``(D) such other information as the Secretary may 
     require.''.

                       TITLE VIII--MISCELLANEOUS

     SEC. 801. MISCELLANEOUS.

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

                      ``TITLE VIII--MISCELLANEOUS

           ``PART A--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM

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

       ``(a) Program Authorized.--The Secretary is authorized to 
     award grants to States, on a competitive basis, to enable the 
     States to award eligible students, who complete a rigorous 
     secondary school curriculum in mathematics and science, 
     scholarships for undergraduate study.
       ``(b) Eligible Students.--A student is eligible for a 
     scholarship under this section if the student is a full-time 
     undergraduate student in the student's first and second year 
     of study who has completed a rigorous secondary school 
     curriculum in mathematics and science.
       ``(c) Rigorous Curriculum.--Each participating State shall 
     determine the requirements for a rigorous secondary school 
     curriculum in mathematics and science described in subsection 
     (b).
       ``(d) Priority for Scholarships.--The Governor of a State 
     may set a priority for awarding scholarships under this 
     section for particular eligible students, such as students 
     attending schools in high-need areas, students who are from 
     groups underrepresented in the fields of mathematics, 
     science, and engineering, students served by local 
     educational agencies that do not meet or exceed State 
     standards in mathematics and science, or students with 
     regional or geographic needs as determined appropriate by the 
     Governor.
       ``(e) Amount and Duration of Scholarship.--The Secretary 
     shall award a grant under this section--
       ``(1) in an amount that does not exceed $1,000; and
       ``(2) for not more than 2 years of undergraduate study.
       ``(f) Matching Requirement.--In order to receive a grant 
     under this section, a State shall provide matching funds for 
     the scholarships awarded under this section in an amount 
     equal to 50 percent of the Federal funds received.
       ``(g) Authorization.--There are authorized to be 
     appropriated to carry out this section such sums as may be 
     necessary for fiscal year 2008 and each of the 5 succeeding 
     fiscal years.

              ``PART B--POSTSECONDARY EDUCATION ASSESSMENT

     ``SEC. 816. POSTSECONDARY EDUCATION ASSESSMENT.

       ``(a) Contract for Assessment.--The Secretary shall enter 
     into a contract, with an independent, bipartisan organization 
     with specific expertise in public administration and 
     financial management, to carry out an independent assessment 
     of the cost factors associated with the cost of tuition at 
     institutions of higher education.
       ``(b) Timeframe.--The Secretary shall enter into the 
     contract described in subsection (a) not later than 90 days 
     after the date of enactment of the Higher Education 
     Amendments of 2007.
       ``(c) Matters Assessed.--The assessment described in 
     subsection (a) shall--
       ``(1) examine the key elements driving the cost factors 
     associated with the cost of tuition at institutions of higher 
     education during the 2001-2002 academic year and succeeding 
     academic years;
       ``(2) identify and evaluate measures being used to control 
     postsecondary education costs;
       ``(3) identify and evaluate effective measures that may be 
     utilized to control postsecondary education costs in the 
     future; and
       ``(4) identify systemic approaches to monitor future 
     postsecondary education cost trends and postsecondary 
     education cost control mechanisms.

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

     ``SEC. 821. JOB SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR 
                   INDUSTRIES.

       ``(a) Grants Authorized.--The Secretary is authorized to 
     award grants, on a competitive basis, to eligible 
     partnerships to enable the eligible partnerships to provide 
     relevant job skill training in high-growth industries or 
     occupations.
       ``(b) Definitions.--In this section:
       ``(1) Eligible partnership.--The term `eligible 
     partnership' means a partnership--
       ``(A) between an institution of higher education and a 
     local board (as such term is defined in section 101 of the 
     Workforce Investment Act of 1998); or
       ``(B) if an institution of higher education is located 
     within a State that does not operate local boards, between 
     the institution of higher education and a State board (as 
     such term is defined in section 101 of the Workforce 
     Investment Act of 1998).
       ``(2) Nontraditional student.--The term `nontraditional 
     student' means a student who--
       ``(A) is independent, as defined in section 480(d);
       ``(B) attends an institution of higher education--
       ``(i) on less than a full-time basis;
       ``(ii) via evening, weekend, modular, or compressed 
     courses; or
       ``(iii) via distance education methods; or
       ``(C) has delayed enrollment at an institution of higher 
     education.
       ``(3) Institution of higher education.--The term 
     `institution of higher education' means an institution of 
     higher education, as defined in section 101(b), that offers a 
     1- or 2-year program of study leading to a degree or 
     certificate.
       ``(c) Application.--
       ``(1) In general.--Each eligible partnership that desires a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such additional information as the Secretary may require.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall include a description of--
       ``(A) how the eligible partnership, through the institution 
     of higher education, will provide relevant job skill training 
     for students to enter high-growth occupations or industries;
       ``(B) local high-growth occupations or industries; and
       ``(C) the need for qualified workers to meet the local 
     demand of high-growth occupations or industries.
       ``(d) Award Basis.--In awarding grants under this section, 
     the Secretary shall--
       ``(1) ensure an equitable distribution of grant funds under 
     this section among urban and rural areas of the United 
     States; and
       ``(2) take into consideration the capability of the 
     institution of higher education--
       ``(A) to offer relevant, high quality instruction and job 
     skill training for students entering a high-growth occupation 
     or industry;
       ``(B) to involve the local business community and to place 
     graduates in the community in employment in high-growth 
     occupations or industries;

[[Page 19949]]

       ``(C) to provide secondary students with dual-enrollment or 
     concurrent enrollment options;
       ``(D) to serve nontraditional or low-income students, or 
     adult or displaced workers; and
       ``(E) to serve students from rural or remote communities.
       ``(e) Use of Funds.--Grant funds provided under this 
     section may be used--
       ``(1) to expand or create academic programs or programs of 
     training that provide relevant job skill training for high-
     growth occupations or industries;
       ``(2) to purchase equipment which will facilitate the 
     development of academic programs or programs of training that 
     provide training for high-growth occupations or industries;
       ``(3) to support outreach efforts that enable students to 
     attend institutions of higher education with academic 
     programs or programs of training focused on high-growth 
     occupations or industries;
       ``(4) to expand or create programs for distance, evening, 
     weekend, modular, or compressed learning opportunities that 
     provide relevant job skill training in high-growth 
     occupations or industries;
       ``(5) to build partnerships with local businesses in high-
     growth occupations or industries;
       ``(6) to support curriculum development related to 
     entrepreneurial training; and
       ``(7) for other uses that the Secretary determines to be 
     consistent with the intent of this section.
       ``(f) Requirements.--
       ``(1) Fiscal agent.--For the purpose of this section, the 
     institution of higher education in an eligible partnership 
     shall serve as the fiscal agent and grant recipient for the 
     eligible partnership.
       ``(2) Duration.--The Secretary shall award grants under 
     this section for periods that may not exceed 5 years.
       ``(3) Supplement, not supplant.--Funds made available under 
     this section shall be used to supplement and not supplant 
     other Federal, State, and local funds available to the 
     eligible partnership for carrying out the activities 
     described in subsection (e).
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this part such 
     sums as may be necessary for fiscal year 2008 and each of the 
     5 succeeding fiscal years.

   ``PART D--ADDITIONAL CAPACITY FOR R.N. STUDENTS OR GRADUATE-LEVEL 
                            NURSING STUDENTS

     ``SEC. 826. ADDITIONAL CAPACITY FOR R.N. STUDENTS OR 
                   GRADUATE-LEVEL NURSING STUDENTS.

       ``(a) Authorization.--The Secretary shall award grants to 
     institutions of higher education that offer--
       ``(1) a R.N. nursing program at the baccalaureate or 
     associate degree level to enable such program to expand the 
     faculty and facilities of such program to accommodate 
     additional R.N. nursing program students; or
       ``(2) a graduate-level nursing program to accommodate 
     advanced practice degrees for R.N.s or to accommodate 
     students enrolled in a graduate-level nursing program to 
     provide teachers of nursing students.
       ``(b) Determination of Number of Students and 
     Application.--Each institution of higher education that 
     offers a program described in subsection (a) that desires to 
     receive a grant under this section shall--
       ``(1) determine for the 4 academic years preceding the 
     academic year for which the determination is made the average 
     number of matriculated nursing program students at such 
     institution for such academic years; and
       ``(2) submit an application to the Secretary at such time, 
     in such manner, and accompanied by such information as the 
     Secretary may require, including the average number 
     determined under paragraph (1).
       ``(c) Grant Amount; Award Basis.--
       ``(1) Grant amount.--For each academic year after academic 
     year 2006-2007, the Secretary shall provide to each 
     institution of higher education awarded a grant under this 
     section an amount that is equal to $3,000 multiplied by the 
     number of matriculated nursing program students at such 
     institution for such academic year that is more than the 
     average number determined with respect to such institution 
     under subsection (b)(1). Such amount shall be used for the 
     purposes described in subsection (a).
       ``(2) Distribution of grants among different degree 
     programs.--
       ``(A) In general.--Subject to subparagraph (B), from the 
     funds available to award grants under this section for each 
     fiscal year, the Secretary shall--
       ``(i) use 20 percent of such funds to award grants under 
     this section to institutions of higher education for the 
     purpose of accommodating advanced practice degrees or 
     students in graduate-level nursing programs;
       ``(ii) use 40 percent of such funds to award grants under 
     this section to institutions of higher education for the 
     purpose of expanding R.N. nursing programs at the 
     baccalaureate degree level; and
       ``(iii) use 40 percent of such funds to award grants under 
     this section to institutions of higher education for the 
     purpose of expanding R.N. nursing programs at the associate 
     degree level.
       ``(B) Distribution of excess funds.--If, for a fiscal year, 
     funds described in clause (i), (ii), or (iii) of subparagraph 
     (A) remain after the Secretary awards grants under this 
     section to all applicants for the particular category of 
     nursing programs described in such clause, the Secretary 
     shall use equal amounts of the remaining funds to award 
     grants under this section to applicants for the remaining 
     categories of nursing programs.
       ``(C) Equitable distribution.--In awarding grants under 
     this section, the Secretary shall, to the extent practicable, 
     ensure--
       ``(i) an equitable geographic distribution of the grants 
     among the States; and
       ``(ii) an equitable distribution of the grants among 
     different types of institutions of higher education.
       ``(d) Prohibition.--
       ``(1) In general.--Funds provided under this section may 
     not be used for the construction of new facilities.
       ``(2) Rule of construction.--Nothing in paragraph (1) shall 
     be construed to prohibit funds provided under this section 
     from being used for the repair or renovation of facilities.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary.

                 ``PART E--AMERICAN HISTORY FOR FREEDOM

     ``SEC. 831. AMERICAN HISTORY FOR FREEDOM.

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

[[Page 19950]]

       ``(ii) to graduate students (including students enrolled in 
     teacher education programs), if applicable;
       ``(iii) to faculty;
       ``(iv) to local educational agencies; and
       ``(v) within the local community.
       ``(2) Allowable uses of funds.--Funds provided under this 
     part may be used to support--
       ``(A) collaboration with entities such as--
       ``(i) local educational agencies, for the purpose of 
     providing elementary, middle and secondary school teachers an 
     opportunity to enhance their knowledge of traditional 
     American history, free institutions, or Western civilization; 
     and
       ``(ii) nonprofit organizations whose mission is consistent 
     with the purpose of this part, such as academic 
     organizations, museums, and libraries, for assistance in 
     carrying out activities described under subsection (a); and
       ``(B) other activities that meet the purposes of this part.
       ``(f) Authorization of Appropriations.--For the purpose of 
     carrying out this part, there are authorized to be 
     appropriated such sums as may be necessary for fiscal year 
     2008 and each of the 5 succeeding fiscal years.

                      ``PART F--TEACH FOR AMERICA

     ``SEC. 836. TEACH FOR AMERICA.

       ``(a) Definitions.--
       ``(1) In general.--The terms `highly qualified', `local 
     educational agency', and `Secretary' have the meanings given 
     the terms in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801).
       ``(2) Grantee.--The term `grantee' means Teach For America, 
     Inc.
       ``(3) High need.--The term `high need', when used with 
     respect to a local educational agency, means a local 
     educational agency experiencing a shortage of highly 
     qualified teachers.
       ``(b) Grants Authorized.--The Secretary is authorized to 
     award a grant to Teach For America, Inc., the national 
     teacher corps of outstanding recent college graduates who 
     commit to teach for 2 years in underserved communities in the 
     United States, to implement and expand its program of 
     recruiting, selecting, training, and supporting new teachers.
       ``(c) Requirements.--In carrying out the grant program 
     under subsection (b), the Secretary shall enter into an 
     agreement with the grantee under which the grantee agrees to 
     use the grant funds provided under this section--
       ``(1) to provide highly qualified teachers to high need 
     local educational agencies in urban and rural communities;
       ``(2) to pay the cost of recruiting, selecting, training, 
     and supporting new teachers; and
       ``(3) to serve a substantial number and percentage of 
     underserved students.
       ``(d) Authorized Activities.--
       ``(1) In general.--Grant funds provided under this section 
     shall be used by the grantee to carry out each of the 
     following activities:
       ``(A) Recruiting and selecting teachers through a highly 
     selective national process.
       ``(B) Providing preservice training to the teachers through 
     a rigorous summer institute that includes hands-on teaching 
     experience and significant exposure to education coursework 
     and theory.
       ``(C) Placing the teachers in schools and positions 
     designated by partner local educational agencies as high need 
     placements serving underserved students.
       ``(D) Providing ongoing professional development activities 
     for the teachers' first 2 years in the classroom, including 
     regular classroom observations and feedback, and ongoing 
     training and support.
       ``(2) Limitation.--The grantee shall use all grant funds 
     received under this section to support activities related 
     directly to the recruitment, selection, training, and support 
     of teachers as described in subsection (a).
       ``(e) Reports and Evaluations.--
       ``(1) Annual report.--The grantee shall provide to the 
     Secretary an annual report that includes--
       ``(A) data on the number and quality of the teachers 
     provided to local educational agencies through a grant under 
     this section;
       ``(B) an externally conducted analysis of the satisfaction 
     of local educational agencies and principals with the 
     teachers so provided; and
       ``(C) comprehensive data on the background of the teachers 
     chosen, the training the teachers received, the placement 
     sites of the teachers, the professional development of the 
     teachers, and the retention of the teachers.
       ``(2) Study.--
       ``(A) In general.--From funds appropriated under subsection 
     (f), the Secretary shall provide for a study that examines 
     the achievement levels of the students taught by the teachers 
     assisted under this section.
       ``(B) Achievement gains compared.--The study shall compare, 
     within the same schools, the achievement gains made by 
     students taught by teachers who are assisted under this 
     section with the achievement gains made by students taught by 
     teachers who are not assisted under this section.
       ``(3) Requirements.--The Secretary shall provide for such a 
     study not less than once every 3 years, and each such study 
     shall include multiple placement sites and multiple schools 
     within placement sites.
       ``(4) Peer review standards.--Each such study shall meet 
     the peer review standards of the education research 
     community.
       ``(f) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section such sums as may be necessary for 
     fiscal year 2008 and each of the 5 succeeding fiscal years.
       ``(2) Limitation.--The grantee shall not use more than 25 
     percent of Federal funds from any source for administrative 
     costs.

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

     ``SEC. 841. PATSY T. MINK FELLOWSHIP PROGRAM.

       ``(a) Purpose.--
       ``(1) In general.--It is the purpose of this section to 
     provide, through eligible institutions, a program of 
     fellowship awards to assist highly qualified minorities and 
     women to acquire the doctoral degree, or highest possible 
     degree available, in academic areas in which such individuals 
     are underrepresented for the purpose of enabling such 
     individuals to enter the higher education professoriate.
       ``(2) Designation.--Each recipient of a fellowship award 
     from an eligible institution receiving a grant under this 
     section shall be known as a `Patsy T. Mink Graduate Fellow'.
       ``(b) Definitions.--In this section, the term `eligible 
     institution' means an institution of higher education, or a 
     consortium of such institutions, that offers a program of 
     postbaccalaureate study leading to a graduate degree.
       ``(c) Program Authorized.--
       ``(1) Grants by secretary.--
       ``(A) In general.--The Secretary shall award grants to 
     eligible institutions to enable such institutions to make 
     fellowship awards to individuals in accordance with the 
     provisions of this section.
       ``(B) Priority consideration.--In awarding grants under 
     this section, the Secretary shall consider the eligible 
     institution's prior experience in producing doctoral degree, 
     or highest possible degree available, holders who are 
     minorities and women, and shall give priority consideration 
     in making grants under this section to those eligible 
     institutions with a demonstrated record of producing 
     minorities and women who have earned such degrees.
       ``(2) Applications.--
       ``(A) In general.--An eligible institution that desires a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(B) Applications made on behalf.--
       ``(i) In general.--The following entities may submit an 
     application on behalf of an eligible institution:

       ``(I) A graduate school or department of such institution.
       ``(II) A graduate school or department of such institution 
     in collaboration with an undergraduate college or university 
     of such institution.
       ``(III) An organizational unit within such institution that 
     offers a program of postbaccalaureate study leading to a 
     graduate degree, including an interdisciplinary or an 
     interdepartmental program.
       ``(IV) A nonprofit organization with a demonstrated record 
     of helping minorities and women earn postbaccalaureate 
     degrees.

       ``(ii) Nonprofit organizations.--Nothing in this paragraph 
     shall be construed to permit the Secretary to award a grant 
     under this section to an entity other than an eligible 
     institution.
       ``(3) Selection of applications.--In awarding grants under 
     subsection (a), the Secretary shall--
       ``(A) take into account--
       ``(i) the number and distribution of minority and female 
     faculty nationally;
       ``(ii) the current and projected need for highly trained 
     individuals in all areas of the higher education 
     professoriate; and
       ``(iii) the present and projected need for highly trained 
     individuals in academic career fields in which minorities and 
     women are underrepresented in the higher education 
     professoriate; and
       ``(B) consider the need to prepare a large number of 
     minorities and women generally in academic career fields of 
     high national priority, especially in areas in which such 
     individuals are traditionally underrepresented in college and 
     university faculty.
       ``(4) Distribution and amounts of grants.--
       ``(A) Equitable distribution.--In awarding grants under 
     this section, the Secretary shall, to the maximum extent 
     feasible, ensure an equitable geographic distribution of 
     awards and an equitable distribution among public and 
     independent eligible institutions that apply for grants under 
     this section and that demonstrate an ability to achieve the 
     purpose of this section.
       ``(B) Special rule.--To the maximum extent practicable, the 
     Secretary shall use not less than 30 percent of the amount 
     appropriated pursuant to subsection (f) to award grants to 
     eligible institutions that--
       ``(i) are eligible for assistance under title III or title 
     V; or
       ``(ii) have formed a consortium that includes both non-
     minority serving institutions and minority serving 
     institutions.
       ``(C) Allocation.--In awarding grants under this section, 
     the Secretary shall allocate appropriate funds to those 
     eligible institutions whose applications indicate an ability 
     to significantly increase the numbers of minorities and women 
     entering the higher education professoriate and that commit 
     institutional resources to the attainment of the purpose of 
     this section.
       ``(D) Number of fellowship awards.--An eligible institution 
     that receives a grant under this section shall make not less 
     than 15 fellowship awards.
       ``(E) Reallotment.--If the Secretary determines that an 
     eligible institution awarded a grant under this section is 
     unable to use all of

[[Page 19951]]

     the grant funds awarded to the institution, the Secretary 
     shall reallot, on such date during each fiscal year as the 
     Secretary may fix, the unused funds to other eligible 
     institutions that demonstrate that such institutions can use 
     any reallocated grant funds to make fellowship awards to 
     individuals under this section.
       ``(5) Institutional allowance.--
       ``(A) In general.--
       ``(i) Number of allowances.--In awarding grants under this 
     section, the Secretary shall pay to each eligible institution 
     awarded a grant, for each individual awarded a fellowship by 
     such institution under this section, an institutional 
     allowance.
       ``(ii) Amount.--Except as provided in paragraph (3), an 
     institutional allowance shall be in an amount equal to, for 
     academic year 2007-2008 and succeeding academic years, the 
     amount of institutional allowance made to an institution of 
     higher education under section 715 for such academic year.
       ``(B) Use of funds.--Institutional allowances may be 
     expended in the discretion of the eligible institution and 
     may be used to provide, except as prohibited under paragraph 
     (4), academic support and career transition services for 
     individuals awarded fellowships by such institution.
       ``(C) Reduction.--The institutional allowance paid under 
     paragraph (1) shall be reduced by the amount the eligible 
     institution charges and collects from a fellowship recipient 
     for tuition and other expenses as part of the recipient's 
     instructional program.
       ``(D) Use for overhead prohibited.--Funds made available 
     under this section may not be used for general operational 
     overhead of the academic department or institution receiving 
     funds under this section.
       ``(d) Fellowship Recipients.--
       ``(1) Authorization.--An eligible institution that receives 
     a grant under this section shall use the grant funds to make 
     fellowship awards to minorities and women who are enrolled at 
     such institution in a doctoral degree, or highest possible 
     degree available, program and--
       ``(A) intend to pursue a career in instruction at--
       ``(i) an institution of higher education (as the term is 
     defined in section 101);
       ``(ii) an institution of higher education (as the term is 
     defined in section 102(a)(1));
       ``(iii) an institution of higher education outside the 
     United States (as the term is described in section 
     102(a)(2)); or
       ``(iv) a proprietary institution of higher education (as 
     the term is defined in section 102(b)); and
       ``(B) sign an agreement with the Secretary agreeing--
       ``(i) to begin employment at an institution described in 
     paragraph (1) not later than 3 years after receiving the 
     doctoral degree or highest possible degree available, which 
     3-year period may be extended by the Secretary for 
     extraordinary circumstances; and
       ``(ii) to be employed by such institution for 1 year for 
     each year of fellowship assistance received under this 
     section.
       ``(2) Failure to comply.--If an individual who receives a 
     fellowship award under this section fails to comply with the 
     agreement signed pursuant to subsection (a)(2), then the 
     Secretary shall do 1 or both of the following:
       ``(A) Require the individual to repay all or the applicable 
     portion of the total fellowship amount awarded to the 
     individual by converting the balance due to a loan at the 
     interest rate applicable to loans made under part B of title 
     IV.
       ``(B) Impose a fine or penalty in an amount to be 
     determined by the Secretary.
       ``(3) Waiver and modification.--
       ``(A) Regulations.--The Secretary shall promulgate 
     regulations setting forth criteria to be considered in 
     granting a waiver for the service requirement under 
     subsection (a)(2).
       ``(B) Content.--The criteria under paragraph (1) shall 
     include whether compliance with the service requirement by 
     the fellowship recipient would be--
       ``(i) inequitable and represent an extraordinary hardship; 
     or
       ``(ii) deemed impossible because the individual is 
     permanently and totally disabled at the time of the waiver 
     request.
       ``(4) Amount of fellowship awards.--Fellowship awards under 
     this section shall consist of a stipend in an amount equal to 
     the level of support provided to the National Science 
     Foundation graduate fellows, except that such stipend shall 
     be adjusted as necessary so as not to exceed the fellow's 
     tuition and fees or demonstrated need (as determined by the 
     institution of higher education where the graduate student is 
     enrolled), whichever is greater.
       ``(5) Academic progress required.--An individual student 
     shall not be eligible to receive a fellowship award--
       ``(A) except during periods in which such student is 
     enrolled, and such student is maintaining satisfactory 
     academic progress in, and devoting essentially full time to, 
     study or research in the pursuit of the degree for which the 
     fellowship support was awarded; and
       ``(B) if the student is engaged in gainful employment, 
     other than part-time employment in teaching, research, or 
     similar activity determined by the eligible institution to be 
     consistent with and supportive of the student's progress 
     toward the appropriate degree.
       ``(e) Rule of Construction.--Nothing in this section shall 
     be construed to require an eligible institution that receives 
     a grant under this section--
       ``(1) to grant a preference or to differentially treat any 
     applicant for a faculty position as a result of the 
     institution's participation in the program under this 
     section; or
       ``(2) to hire a Patsy T. Mink Fellow who completes this 
     program and seeks employment at such institution.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section such sums as may 
     be necessary for fiscal year 2008 for each of the 5 
     succeeding fiscal years.

      ``PART H--IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS

     ``SEC. 846. IMPROVING COLLEGE ENROLLMENT BY SECONDARY 
                   SCHOOLS.

       ``(a) In General.--The Secretary shall contract with 1 
     nonprofit organization described in subsection (b) to enable 
     the nonprofit organization--
       ``(1) to make publicly available the year-to-year higher 
     education enrollment rate trends of secondary school 
     students, disaggregated by secondary school, in full 
     compliance with the Family Education Rights and Privacy Act 
     of 1974;
       ``(2) to identify not less than 50 urban local educational 
     agencies and 5 States with significant rural populations, 
     each serving a significant population of low-income students, 
     and to carry out a comprehensive needs assessment in the 
     agencies and States of the factors known to contribute to 
     improved higher education enrollment rates, which factors 
     shall include--
       ``(A) an evaluation of the local educational agency's and 
     State's leadership strategies;
       ``(B) the secondary school curriculum and class offerings 
     of the local educational agency and State;
       ``(C) the professional development used by the local 
     educational agency and the State to assist teachers, higher 
     education counselors, and administrators in supporting the 
     transition of secondary students into higher education;
       ``(D) secondary school student attendance and other factors 
     demonstrated to be associated with enrollment into higher 
     education;
       ``(E) the data systems used by the local educational agency 
     and the State to measure college enrollment rates and the 
     incentives in place to motivate the efforts of faculty and 
     students to improve student and school-wide outcomes; and
       ``(F) strategies to mobilize student leaders to build a 
     college-bound culture; and
       ``(3) to provide comprehensive services to improve the 
     school-wide higher education enrollment rates of each of not 
     less than 10 local educational agencies and States, with the 
     federally funded portion of each project declining by not 
     less than 20 percent each year beginning in the second year 
     of the comprehensive services, that--
       ``(A) participated in the needs assessment described in 
     paragraph (2); and
       ``(B) demonstrated a willingness and commitment to 
     improving the higher education enrollment rates of the local 
     educational agency or State, respectively.
       ``(b) Grant Recipient Criteria.--The recipient of the grant 
     awarded under subsection (a) shall be a nonprofit 
     organization with demonstrated expertise--
       ``(1) in increasing school-wide higher education enrollment 
     rates in low-income communities nationwide by providing 
     curriculum, training, and technical assistance to secondary 
     school staff and student peer influencers; and
       ``(2) in a college transition data management system.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for fiscal year 2008 and each of the 5 
     succeeding fiscal years.

               ``PART I--PREDOMINANTLY BLACK INSTITUTIONS

     ``SEC. 850. PREDOMINANTLY BLACK INSTITUTIONS.

       ``(a) Purpose.--It is the purpose of this section to assist 
     Predominantly Black Institutions in expanding educational 
     opportunity through a program of Federal assistance.
       ``(b) Definitions.--In this section:
       ``(1) Educational and general expenditures.--The term 
     `educational and general expenditures' has the meaning given 
     the term in section 312.
       ``(2) Eligible institution.--The term `eligible 
     institution' means an institution of higher education that--
       ``(A) has an enrollment of needy undergraduate students;
       ``(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 that is 
     not less than 40 percent Black American students;
       ``(D) is legally authorized to provide, and provides within 
     the State, an educational program for which the institution 
     of higher education awards a baccalaureate degree, or in the 
     case of a junior or community college, an associate's degree; 
     and
       ``(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.
       ``(3) Endowment fund.--The term `endowment fund' has the 
     meaning given the term in section 312.

[[Page 19952]]

       ``(4) 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;
       ``(B) come from families that receive benefits under a 
     means-tested Federal benefit program;
       ``(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 and a majority 
     of such first-generation college students are low-income 
     individuals.
       ``(5) First generation college student.--The term `first 
     generation college student' has the meaning given the term in 
     section 402A(g).
       ``(6) Low-income individual.--The term `low-income 
     individual' has the meaning given such term in section 
     402A(g).
       ``(7) 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 program's benefits, or the amount 
     of such benefits, are determined on the basis of income or 
     resources of the individual or family seeking the benefit.
       ``(8) Predominantly black institution.--The term 
     `Predominantly Black Institution' means an institution of 
     higher education, as defined in section 101(a)--
       ``(A) that is an eligible institution with not less than 
     1,000 undergraduate students;
       ``(B) at which not less than 50 percent of the 
     undergraduate students enrolled at the eligible institution 
     are low-income individuals or first generation college 
     students; and
       ``(C) at 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 
     eligible institution is licensed to award by the State in 
     which the eligible institution is located.
       ``(9) State.--The term `State' means each of the 50 States 
     and the District of Columbia.
       ``(c) Grant Authority.--
       ``(1) In general.--The Secretary is authorized to award 
     grants, from allotments under subsection (e), to 
     Predominantly Black Institutions to enable the Predominantly 
     Black Institutions to carry out the authorized activities 
     described in subsection (d).
       ``(2) Priority.--In awarding grants under this section the 
     Secretary shall give priority to Predominantly Black 
     Institutions with large numbers or percentages of students 
     described in subsections (b)(2)(A) or (b)(2)(C). The level of 
     priority given to Predominantly Black Institutions with large 
     numbers or percentages of students described in subsection 
     (b)(2)(A) shall be twice the level of priority given to 
     Predominantly Black Institutions with large numbers or 
     percentages of students described in subsection (b)(2)(C).
       ``(d) Authorized Activities.--
       ``(1) Required activities.--Grant funds provided under this 
     section shall be used--
       ``(A) to assist the Predominantly Black Institution to 
     plan, develop, undertake, and implement programs to enhance 
     the institution's capacity to serve more low- and middle-
     income Black American students;
       ``(B) to expand higher education opportunities for students 
     eligible to participate in programs under title IV by 
     encouraging college preparation and student persistence in 
     secondary school and postsecondary education; and
       ``(C) to strengthen the financial ability of the 
     Predominantly Black Institution to serve the academic needs 
     of the students described in subparagraphs (A) and (B).
       ``(2) Additional activities.--Grant funds provided under 
     this section shall be used for 1 or more of the following 
     activities:
       ``(A) The activities described in paragraphs (1) through 
     (11) of section 311(c).
       ``(B) Academic instruction in disciplines in which Black 
     Americans are underrepresented.
       ``(C) Establishing or enhancing a program of teacher 
     education designed to qualify students to teach in a public 
     elementary school or secondary school in the State that shall 
     include, as part of such program, preparation for teacher 
     certification or licensure.
       ``(D) Establishing community outreach programs that will 
     encourage elementary school and secondary school students to 
     develop the academic skills and the interest to pursue 
     postsecondary education.
       ``(E) Other activities proposed in the application 
     submitted pursuant to subsection (f) that--
       ``(i) contribute to carrying out the purpose of this 
     section; and
       ``(ii) are approved by the Secretary as part of the review 
     and approval of an application submitted under subsection 
     (f).
       ``(3) Endowment fund.--
       ``(A) In general.--A Predominantly Black Institution may 
     use not more than 20 percent of the grant funds provided 
     under this section to establish or increase an endowment fund 
     at the institution.
       ``(B) Matching requirement.--In order to be eligible to use 
     grant funds in accordance with subparagraph (A), a 
     Predominantly Black Institution shall provide matching funds 
     from non-Federal sources, in an amount equal to or greater 
     than the Federal funds used in accordance with subparagraph 
     (A), for the establishment or increase of the endowment fund.
       ``(C) Comparability.--The provisions of part C of title 
     III, regarding the establishment or increase of an endowment 
     fund, that the Secretary determines are not inconsistent with 
     this subsection, shall apply to funds used under subparagraph 
     (A).
       ``(4) Limitation.--Not more than 50 percent of the grant 
     funds provided to a Predominantly Black Institution under 
     this section may be available for the purpose of constructing 
     or maintaining a classroom, library, laboratory, or other 
     instructional facility.
       ``(e) Allotments to Predominantly Black Institutions.--
       ``(1) Federal pell grant basis.--From the amounts 
     appropriated to carry out this section for any fiscal year, 
     the Secretary shall allot to each Predominantly Black 
     Institution having an application approved under subsection 
     (f) a sum that bears the same ratio to one-half of that 
     amount as the number of Federal Pell Grant recipients in 
     attendance at such institution at the end of the academic 
     year preceding the beginning of that fiscal year, bears to 
     the total number of Federal Pell Grant recipients at all such 
     institutions at the end of such academic year.
       ``(2) Graduates basis.--From the amounts appropriated to 
     carry out this section for any fiscal year, the Secretary 
     shall allot to each Predominantly Black Institution having an 
     application approved under subsection (f) a sum that bears 
     the same ratio to one-fourth of that amount as the number of 
     graduates for such academic year at such institution, bears 
     to the total number of graduates for such academic year at 
     all such institutions.
       ``(3) Graduates seeking a higher degree basis.--From the 
     amounts appropriated to carry out this section for any fiscal 
     year, the Secretary shall allot to each Predominantly Black 
     Institution having an application approved under subsection 
     (f) a sum that bears the same ratio to one-fourth of that 
     amount as the percentage of graduates from such institution 
     who are admitted to and in attendance at, not later than 2 
     years after graduation with an associate's degree or a 
     baccalaureate degree, a baccalaureate degree-granting 
     institution or a graduate or professional school in a degree 
     program in disciplines in which Black American students are 
     underrepresented, bears to the percentage of such graduates 
     for all such institutions.
       ``(4) Minimum allotment.--
       ``(A) In general.--Notwithstanding paragraphs (1), (2), and 
     (3), the amount allotted to each Predominantly Black 
     Institution under this section shall not be less than 
     $250,000.
       ``(B) Insufficient amount.--If the amount appropriated 
     pursuant to subsection (i) for a fiscal year is not 
     sufficient to pay the minimum allotment provided under 
     subparagraph (A) for the fiscal year, then the amount of such 
     minimum allotment shall be ratably reduced. If additional 
     sums become available for such fiscal year, such reduced 
     allotment shall be increased on the same basis as the 
     allotment was reduced until the amount allotted equals the 
     minimum allotment required under subparagraph (A).
       ``(5) Reallotment.--The amount of a Predominantly Black 
     Institution's allotment under paragraph (1), (2), (3), or (4) 
     for any fiscal year that the Secretary determines will not be 
     required for such institution for the period such allotment 
     is available, shall be available for reallotment to other 
     Predominantly Black Institutions in proportion to the 
     original allotment to such other institutions under this 
     section for such fiscal year. The Secretary shall reallot 
     such amounts from time to time, on such date and during such 
     period as the Secretary determines appropriate.
       ``(f) Applications.--Each Predominantly Black Institution 
     desiring a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing or accompanied by such information as the 
     Secretary may reasonably require.
       ``(g) Prohibition.--No Predominantly Black Institution that 
     applies for and receives a grant under this section may apply 
     for or receive funds under any other program under part A or 
     part B of title III.
       ``(h) Duration and Carryover.--Any grant funds paid to a 
     Predominantly Black Institution under this section that are 
     not expended or used for the purposes for which the funds 
     were paid within 10 years following the date on which the 
     grant was awarded, shall be repaid to the Treasury.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2008 and each of 5 
     succeeding fiscal years.

``PART J--EARLY CHILDHOOD EDUCATION PROFESSIONAL DEVELOPMENT AND CAREER 
                               TASK FORCE

     ``SEC. 851. SHORT TITLE.

       ``This part may be cited as the `Early Childhood Education 
     Professional Development and Career Task Force Act'.

     ``SEC. 852. PURPOSE.

       ``It is the purpose of this part--

[[Page 19953]]

       ``(1) to improve the quality of the early childhood 
     education workforce by creating a statewide early childhood 
     education professional development and career task force for 
     early childhood education program staff, directors, and 
     administrators; and
       ``(2) to create--
       ``(A) a coherent system of core competencies, pathways to 
     qualifications, credentials, degrees, quality assurances, 
     access, and outreach, for early childhood education program 
     staff, directors, and administrators, that is linked to 
     compensation commensurate with experience and qualifications;
       ``(B) articulation agreements that enable early childhood 
     education professionals to transition easily among degrees; 
     and
       ``(C) compensation initiatives for individuals working in 
     an early childhood education program that reflect the 
     individuals' credentials, degrees, and experience.

     ``SEC. 853. DEFINITION OF EARLY CHILDHOOD EDUCATION PROGRAM.

       ``In this part, the term `early childhood education 
     program' means--
       ``(1) a family child care program, center-based child care 
     program, State prekindergarten program, or school-based 
     program, that--
       ``(A) provides early childhood education;
       ``(B) uses developmentally appropriate practices;
       ``(C) is licensed or regulated by the State; and
       ``(D) serves children from birth through age 5;
       ``(2) a Head Start Program carried out under the Head Start 
     Act; or
       ``(3) an Early Head Start Program carried out under section 
     645A of the Head Start Act.

     ``SEC. 854. GRANTS AUTHORIZED.

       ``(a) In General.--The Secretary is authorized to award 
     grants to States in accordance with the provisions of this 
     part to enable such States--
       ``(1) to establish a State Task Force described in section 
     855; and
       ``(2) to support activities of the State Task Force 
     described in section 856.
       ``(b) Competitive Basis.--Grants under this part shall be 
     awarded on a competitive basis.
       ``(c) Equitable Geographic Distribution.--In awarding 
     grants under this part, the Secretary shall take into 
     consideration providing an equitable geographic distribution 
     of such grants.
       ``(d) Duration.--Grants under this part shall be awarded 
     for a period of 5 years.

     ``SEC. 855. STATE TASK FORCE ESTABLISHMENT.

       ``(a) State Task Force Established.--The Governor of a 
     State receiving a grant under this part shall establish, or 
     designate an existing entity to serve as, the State Early 
     Childhood Education Professional Development and Career Task 
     Force (hereafter in this part referred to as the `State Task 
     Force').
       ``(b) Membership.--The State Task Force shall include a 
     representative of a State agency, an institution of higher 
     education (including an associate or a baccalaureate degree 
     granting institution of higher education), an early childhood 
     education program, a nonprofit early childhood organization, 
     a statewide early childhood workforce scholarship or 
     supplemental initiative, and any other entity or individual 
     the Governor determines appropriate.

     ``SEC. 856. STATE TASK FORCE ACTIVITIES.

       ``(a) Activities.--The State Task Force shall--
       ``(1) coordinate and communicate regularly with the State 
     Advisory Council on Early Care and Education (hereafter in 
     this part referred to as `State Advisory Council') or a 
     similar State entity charged with creating a comprehensive 
     system of early care and education in the State, for the 
     purposes of--
       ``(A) integrating recommendations for early childhood 
     professional development and career activities into the plans 
     of the State Advisory Council; and
       ``(B) assisting in the implementation of professional 
     development and career activities that are consistent with 
     the plans described in subparagraph (A);
       ``(2) conduct a review of opportunities for and barriers to 
     high quality professional development, training, and higher 
     education degree programs, in early childhood development and 
     learning, including a periodic statewide survey concerning 
     the demographics of individuals working in early childhood 
     education programs in the State, which survey shall include 
     information disaggregated by--
       ``(A) race, gender, and ethnicity;
       ``(B) compensation levels;
       ``(C) type of early childhood education program setting;
       ``(D) specialized knowledge of child development;
       ``(E) years of experience in an early childhood education 
     program; and
       ``(F) attainment of--
       ``(i) academic credit for coursework;
       ``(ii) an academic degree;
       ``(iii) a credential;
       ``(iv) licensure; or
       ``(v) certification in early childhood education; and
       ``(3) develop a plan for a comprehensive statewide 
     professional development and career system for individuals 
     working in early childhood education programs or for early 
     childhood education providers, which plan shall include--
       ``(A) methods of providing outreach to early childhood 
     education program staff, directors, and administrators, 
     including methods for how outreach is provided to non-English 
     speaking providers, in order to enable the providers to be 
     aware of opportunities and resources under the statewide 
     plan;
       ``(B) developing a unified data collection and 
     dissemination system for early childhood education training, 
     professional development, and higher education programs;
       ``(C) increasing the participation of early childhood 
     educators in high quality training and professional 
     development by assisting in paying the costs of enrollment in 
     and completion of such training and professional development 
     courses;
       ``(D) increasing the participation of early childhood 
     educators in postsecondary education programs leading to 
     degrees in early childhood education by providing assistance 
     to pay the costs of enrollment in and completion of such 
     postsecondary education programs, which assistance--
       ``(i) shall only be provided to an individual who--

       ``(I) enters into an agreement under which the individual 
     agrees to work, for a reasonable number of years after 
     receiving such a degree, in an early childhood education 
     program that is located in a low-income area; and
       ``(II) has a family income equal to or less than the 
     annually adjusted national median family income as determined 
     by the Bureau of the Census; and

       ``(ii) shall be provided in an amount that does not exceed 
     $17,500;
       ``(E) supporting professional development activities and a 
     career lattice for a variety of early childhood professional 
     roles with varying professional qualifications and 
     responsibilities for early childhood education personnel, 
     including strategies to enhance the compensation of such 
     personnel;
       ``(F) supporting articulation agreements between 2- and 4-
     year public and private institutions of higher education and 
     mechanisms to transform other training, professional 
     development, and experience into academic credit;
       ``(G) developing mentoring and coaching programs to support 
     new educators in and directors of early childhood education 
     programs;
       ``(H) providing career development advising with respect to 
     the field of early childhood education, including informing 
     an individual regarding--
       ``(i) entry into and continuing education requirements for 
     professional roles in the field;
       ``(ii) available financial assistance; and
       ``(iii) professional development and career advancement in 
     the field;
       ``(I) enhancing the quality of faculty and coursework in 
     postsecondary programs that lead to an associate, 
     baccalaureate, or graduate degree in early childhood 
     education;
       ``(J) consideration of the availability of on-line graduate 
     level professional development offered by institutions of 
     higher education with experience and demonstrated expertise 
     in establishing programs in child development, in order to 
     improve the skills and expertise of individuals working in 
     early childhood education programs; and
       ``(K) developing or enhancing a system of quality assurance 
     with respect to the early childhood education professional 
     development and career system, including standards or 
     qualifications for individuals and entities who offer 
     training and professional development in early childhood 
     education.
       ``(b) Public Hearings.--The State Task Force shall hold 
     public hearings and provide an opportunity for public comment 
     on the activities described in the statewide plan described 
     in subsection (a)(3).
       ``(c) Periodic Review.--The State Task Force shall meet 
     periodically to review implementation of the statewide plan 
     and to recommend any changes to the statewide plan the State 
     Task Force determines necessary.

     ``SEC. 857. STATE APPLICATION AND REPORT.

       ``(a) In General.--Each State desiring a grant under this 
     part shall submit an application to the Secretary at such 
     time, in such manner, and accompanied by such information as 
     the Secretary may reasonably require. Each such application 
     shall include a description of--
       ``(1) the membership of the State Task Force;
       ``(2) the activities for which the grant assistance will be 
     used;
       ``(3) other Federal, State, local, and private resources 
     that will be available to support the activities of the State 
     Task Force described in section 856;
       ``(4) the availability within the State of training, early 
     childhood educator preparation, professional development, 
     compensation initiatives, and career systems, related to 
     early childhood education; and
       ``(5) the resources available within the State for such 
     training, educator preparation, professional development, 
     compensation initiatives, and career systems.
       ``(b) Report to the Secretary.--Not later than 2 years 
     after receiving a grant under this part, a State shall submit 
     a report to the Secretary that shall describe--
       ``(1) other Federal, State, local, and private resources 
     that will be used in combination with a grant under this 
     section to develop or expand the State's early childhood 
     education professional development and career activities;
       ``(2) the ways in which the State Advisory Council (or 
     similar State entity) will coordinate the various State and 
     local activities that support the early childhood education 
     professional development and career system; and
       ``(3) the ways in which the State Task Force will use funds 
     provided under this part and carry out the activities 
     described in section 856.

     ``SEC. 858. EVALUATIONS.

       ``(a) State Evaluation.--Each State receiving a grant under 
     this part shall--

[[Page 19954]]

       ``(1) evaluate the activities that are assisted under this 
     part in order to determine--
       ``(A) the effectiveness of the activities in achieving 
     State goals;
       ``(B) the impact of a career lattice for individuals 
     working in early childhood education programs;
       ``(C) the impact of the activities on licensing or 
     regulating requirements for individuals in the field of early 
     childhood development;
       ``(D) the impact of the activities, and the impact of the 
     statewide plan described in section 856(a)(3), on the quality 
     of education, professional development, and training related 
     to early childhood education programs that are offered in the 
     State;
       ``(E) the change in compensation and retention of 
     individuals working in early childhood education programs 
     within the State resulting from the activities; and
       ``(F) the impact of the activities on the demographic 
     characteristics of individuals working in early childhood 
     education programs; and
       ``(2) submit a report at the end of the grant period to the 
     Secretary regarding the evaluation described in paragraph 
     (1).
       ``(b) Secretary's Evaluation.--Not later than September 30, 
     2013, the Secretary, in consultation with the Secretary of 
     Health and Human Services, shall prepare and submit to the 
     authorizing committees an evaluation of the State reports 
     submitted under subsection (a)(2).

     ``SEC. 859. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for fiscal year 2008 and 
     each of the 5 succeeding fiscal years.

 ``PART K--IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS 
  EDUCATION WITH A FOCUS ON ALASKA NATIVE AND NATIVE HAWAIIAN STUDENTS

     ``SEC. 861. IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND 
                   MATHEMATICS EDUCATION WITH A FOCUS ON ALASKA 
                   NATIVE AND NATIVE HAWAIIAN STUDENTS.

       ``(a) Purpose.--The purpose of this section is--
       ``(1) to develop or expand programs for the development of 
     professionals in the fields of science, technology, 
     engineering, and mathematics; and
       ``(2) to focus resources on meeting the educational and 
     cultural needs of Alaska Natives and Native Hawaiians.
       ``(b) Definitions.--In this section:
       ``(1) Alaska native.--The term `Alaska Native' has the 
     meaning given the term `Native' in section 3(b) of the Alaska 
     Natives Claims Settlement Act (43 U.S.C. 1602(b)).
       ``(2) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101(a).
       ``(3) Eligible partnership.--The term `eligible 
     partnership' means a partnership that includes--
       ``(A) 1 or more colleges or schools of engineering;
       ``(B) 1 or more colleges of science, engineering, or 
     mathematics;
       ``(C) 1 or more institutions of higher education that offer 
     2-year degrees; and
       ``(D) 1 or more private entities that--
       ``(i) conduct career awareness activities showcasing local 
     technology professionals;
       ``(ii) encourage students to pursue education in science, 
     technology, engineering, and mathematics from elementary 
     school through college, and careers in those fields, with the 
     assistance of local technology professionals;
       ``(iii) develop internships, apprenticeships, and mentoring 
     programs in partnership with relevant industries; and
       ``(iv) assist with placement of interns and apprentices.
       ``(4) Native hawaiian.--The term `Native Hawaiian' has the 
     meaning given the term in section 7207 of the Elementary and 
     Secondary Education Act of 1965.
       ``(c) Grant Authorized.--The Secretary is authorized to 
     award a grant to an eligible partnership to enable the 
     eligible partnership to expand programs for the development 
     of science, technology, engineering, or mathematics 
     professionals, from elementary school through college, 
     including existing programs for Alaska Native and Native 
     Hawaiian students.
       ``(d) Uses of Funds.--Grant funds under this section shall 
     be used for 1 or more of the following:
       ``(1) Development or implementation of cultural, social, or 
     educational transition programs to assist students to 
     transition into college life and academics in order to 
     increase such students' retention rates in the fields of 
     science, technology, engineering, or mathematics, with a 
     focus on Alaska Native or Native Hawaiian students.
       ``(2) Development or implementation of academic support or 
     supplemental educational programs to increase the graduation 
     rates of students in the fields of science, technology, 
     engineering, or mathematics, with a focus on Alaska Native 
     and Native Hawaiian students.
       ``(3) Development or implementation of internship programs, 
     carried out in coordination with educational institutions and 
     private entities, to prepare students for careers in the 
     fields of science, technology, engineering, or mathematics, 
     with a focus on programs that serve Alaska Native or Native 
     Hawaiian students.
       ``(4) Such other activities that are consistent with the 
     purposes of this section.
       ``(e) Application.--Each eligible partnership that desires 
     a grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(f) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to an eligible partnership that 
     provides 1 or more programs in which 30 percent or more of 
     the program participants are Alaska Native or Native 
     Hawaiian.
       ``(g) Period of Grant.--A grant under this section shall be 
     awarded for a period of 5 years.
       ``(h) Evaluation and Report.--Each eligible partnership 
     that receives a grant under this section shall conduct an 
     evaluation to determine the effectiveness of the programs 
     funded under the grant and shall provide a report regarding 
     the evaluation to the Secretary not later than 6 months after 
     the end of the grant period.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2008 and each of the 
     5 succeeding fiscal years.

 ``PART L--PILOT PROGRAM TO INCREASE PERSISTENCE IN COMMUNITY COLLEGES

     ``SEC. 865. PILOT PROGRAM TO INCREASE PERSISTENCE IN 
                   COMMUNITY COLLEGES.

       ``(a) Definitions.--In this section:
       ``(1) Institution of higher education.--Except as otherwise 
     provided in this section, the term `institution of higher 
     education' means an institution of higher education, as 
     defined in section 101, that provides a 1- or 2-year program 
     of study leading to a degree or certificate.
       ``(2) Eligible student.--The term `eligible student' means 
     a student who--
       ``(A) meets the requirements of section 484(a);
       ``(B) is enrolled at least half time;
       ``(C) is not younger than age 19 and not older than age 33;
       ``(D) is the parent of at least 1 dependent child, which 
     dependent child is age 18 or younger;
       ``(E) has a family income below 200 percent of the poverty 
     line;
       ``(F) has a secondary school diploma or its recognized 
     equivalent, and earned a passing score on a college entrance 
     examination; and
       ``(G) does not have a degree or occupational certificate 
     from an institution of higher education, as defined in 
     section 101 or 102(a).
       ``(b) Program Authorized.--The Secretary is authorized to 
     award grants, on a competitive basis, to institutions of 
     higher education to enable the institutions of higher 
     education to provide additional monetary and nonmonetary 
     support to eligible students to enable the eligible students 
     to maintain enrollment and complete degree or certificate 
     programs.
       ``(c) Uses of Funds.--
       ``(1) Required uses.--Each institution of higher education 
     receiving a grant under this section shall use the grant 
     funds--
       ``(A) to provide scholarships in accordance with subsection 
     (d); and
       ``(B) to provide counseling services in accordance with 
     subsection (e).
       ``(2) Allowable uses of funds.--Grant funds provided under 
     this section may be used--
       ``(A) to conduct outreach to make students aware of the 
     scholarships and counseling services available under this 
     section and to encourage the students to participate in the 
     program assisted under this section;
       ``(B) to provide gifts of $20 or less, such as a store gift 
     card, to applicants who complete the process of applying for 
     assistance under this section, as an incentive and as 
     compensation for the student's time; and
       ``(C) to evaluate the success of the program.
       ``(d) Scholarship Requirements.--
       ``(1) In general.--Each scholarship awarded under this 
     section shall--
       ``(A) be awarded for 1 academic year;
       ``(B) be awarded in the amount of $1,000 for each of 2 
     semesters (prorated for quarters), or $2,000 for an academic 
     year;
       ``(C) require the student to maintain during the 
     scholarship period at least half-time enrollment and a 2.0 or 
     C grade point average; and
       ``(D) be paid in increments of--
       ``(i) $250 upon enrollment (prorated for quarters);
       ``(ii) $250 upon passing midterm examinations (prorated for 
     quarters); and
       ``(iii) $500 upon passing courses (prorated for quarters).
       ``(2) Number.--An institution may award an eligible student 
     not more than 2 scholarships under this section.
       ``(e) Counseling Services.--
       ``(1) In general.--Each institution of higher education 
     receiving a grant under this section shall use the grant 
     funds to provide students at the institution with a 
     counseling staff dedicated to students participating in the 
     program under this section. Each such counselor shall--
       ``(A) have a caseload of less than 125 students;
       ``(B) use a proactive, team-oriented approach to 
     counseling;
       ``(C) hold a minimum of 2 meetings with students each 
     semester; and
       ``(D) provide referrals to and follow-up with other student 
     services staff, including financial and career services.
       ``(2) Counseling services availability.--The counseling 
     services provided under this section shall be available to 
     participating students during the daytime and evening hours.
       ``(f) Application.--An institution of higher education that 
     desires to receive a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require, 
     including--
       ``(1) the number of students to be served under this 
     section;

[[Page 19955]]

       ``(2) a description of the scholarships and counseling 
     services that will be provided under this section; and
       ``(3) a description of how the program under this section 
     will be evaluated.
       ``(g) Period of Grant.--The Secretary may award a grant 
     under this section for a period of 5 years.
       ``(h) Evaluation.--
       ``(1) In general.--Each institution of higher education 
     receiving a grant under this section shall conduct an annual 
     evaluation of the impact of the grant and shall provide the 
     evaluation to the Secretary. The Secretary shall disseminate 
     to the public the findings, information on best practices, 
     and lessons learned, with respect to the evaluations.
       ``(2) Random assignment research design.--The evaluation 
     shall be conducted using a random assignment research design 
     with the following requirements:
       ``(A) When students are recruited for the program, all 
     students will be told about the program and the evaluation.
       ``(B) Baseline data will be collected from all applicants 
     for assistance under this section.
       ``(C) Students will be assigned randomly to 2 groups, which 
     will consist of--
       ``(i) a program group that will receive the scholarship and 
     the additional counseling services; and
       ``(ii) a control group that will receive whatever regular 
     financial aid and counseling services are available to all 
     students at the institution of higher education.
       ``(3) Previous cohorts.--In conducting the evaluation for 
     the second and third years of the program, each institution 
     of higher education shall include information on previous 
     cohorts of students as well as students in the current 
     program year.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2008 and each of the 
     5 succeeding fiscal years.

        ``PART M--STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT

     ``SEC. 871. STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT.

       ``(a) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants, on a competitive basis, to institutions of higher 
     education or consortia of institutions of higher education to 
     enable institutions of higher education or consortia to pay 
     the Federal share of the cost of carrying out the authorized 
     activities described in subsection (c).
       ``(2) Consultation with the attorney general and the 
     secretary of homeland security.--Where appropriate, the 
     Secretary shall award grants under this section in 
     consultation with the Attorney General of the United States 
     and the Secretary of Homeland Security.
       ``(3) Duration.--The Secretary shall award each grant under 
     this section for a period of 2 years.
       ``(4) Limitation on institutions and consortia.--An 
     institution of higher education or consortium shall be 
     eligible for only 1 grant under this section.
       ``(b) Federal Share; Non-Federal Share.--
       ``(1) In general.--The Federal share shall be 50 percent.
       ``(2) Non-federal share.--The institution of higher 
     education or consortium shall provide the non-Federal share, 
     which may be provided from other Federal, State, and local 
     resources dedicated to emergency preparedness and response.
       ``(c) Authorized Activities.--Each institution of higher 
     education or consortium receiving a grant under this section 
     may use the grant funds to carry out 1 or more of the 
     following:
       ``(1) Developing and implementing a state-of-the-art 
     emergency communications system for each campus of an 
     institution of higher education or consortium, in order to 
     contact students via cellular, text message, or other state-
     of-the-art communications methods when a significant 
     emergency or dangerous situation occurs. An institution or 
     consortium using grant funds to carry out this paragraph 
     shall also, in coordination with the appropriate State and 
     local emergency management authorities--
       ``(A) develop procedures that students, employees, and 
     others on a campus of an institution of higher education or 
     consortium will be directed to follow in the event of a 
     significant emergency or dangerous situation; and
       ``(B) develop procedures the institution of higher 
     education or consortium shall follow to inform, within a 
     reasonable and timely manner, students, employees, and others 
     on a campus in the event of a significant emergency or 
     dangerous situation, which procedures shall include the 
     emergency communications system described in this paragraph.
       ``(2) Supporting measures to improve safety at the 
     institution of higher education or consortium, such as--
       ``(A) security assessments;
       ``(B) security training of personnel and students at the 
     institution of higher education or consortium;
       ``(C) where appropriate, coordination of campus 
     preparedness and response efforts with local law enforcement, 
     local emergency management authorities, and other agencies, 
     to improve coordinated responses in emergencies among such 
     entities; and
       ``(D) establishing a hotline that allows a student or staff 
     member at an institution or consortium to report another 
     student or staff member at the institution or consortium who 
     the reporting student or staff member believes may be a 
     danger to the reported student or staff member or to others.
       ``(3) Coordinating with appropriate local entities the 
     provision of, mental health services for students enrolled in 
     the institution of higher education or consortium, including 
     mental health crisis response and intervention services, to 
     individuals affected by a campus or community emergency.
       ``(d) Application.--Each institution of higher education or 
     consortium 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.
       ``(e) Technical Assistance.--The Secretary shall coordinate 
     technical assistance provided by State and local emergency 
     management agencies, the Department of Homeland Security, and 
     other agencies as appropriate, to institutions of higher 
     education or consortia that request assistance in developing 
     and implementing the activities assisted under this section.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed--
       ``(1) to provide a private right of action to any person to 
     enforce any provision of this section;
       ``(2) to create a cause of action against any institution 
     of higher education or any employee of the institution for 
     any civil liability; or
       ``(3) to affect the Family Educational Rights and Privacy 
     Act of 1974 or the regulations issued under section 264 of 
     the Health Insurance Portability and Accountability Act of 
     1996 (42 U.S.C. 1320d-2 note).
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2008 and each of the 
     5 succeeding fiscal years.

     ``SEC. 872. MODEL EMERGENCY RESPONSE POLICIES, PROCEDURES, 
                   AND PRACTICES.

       ``The Secretary of Education, the Attorney General of the 
     United States, and the Secretary of Homeland Security shall 
     jointly have the authority--
       ``(1) to advise institutions of higher education on model 
     emergency response policies, procedures, and practices; and
       ``(2) to disseminate information concerning those policies, 
     procedures, and practices.''.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

     SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

       Section 104 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4304) is amended--
       (1) by striking the section heading and inserting ``laurent 
     clerc national deaf education center'';
       (2) in subsection (a)(1)(A), by inserting ``the Laurent 
     Clerc National Deaf Education Center (referred to in this 
     section as the `Clerc Center') to carry out'' after 
     ``maintain and operate''; and
       (3) in subsection (b)--
       (A) in the matter preceding subparagraph (A) of paragraph 
     (1), by striking ``elementary and secondary education 
     programs'' and inserting ``Clerc Center'';
       (B) in paragraph (2), by striking ``elementary and 
     secondary education programs'' and inserting ``Clerc 
     Center''; and
       (C) by adding at the end the following:
       ``(5) The University, for purposes of the elementary and 
     secondary education programs carried out at the Clerc Center, 
     shall--
       ``(A)(i) select challenging academic content standards, 
     challenging student academic achievement standards, and 
     academic assessments of a State, adopted and implemented, as 
     appropriate, pursuant to paragraphs (1) and (3) of section 
     1111(b) of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6311(b)(1) and (3)) and approved by the Secretary; 
     and
       ``(ii) implement such standards and assessments for such 
     programs by not later than the beginning of the 2009-2010 
     academic year;
       ``(B) annually determine whether such programs at the Clerc 
     Center are making adequate yearly progress, as determined 
     according to the definition of adequate yearly progress 
     defined (pursuant to section 1111(b)(2)(C) of such Act (20 
     U.S.C. 6311(b)(2)(C))) by the State that has adopted and 
     implemented the standards and assessments selected under 
     subparagraph (A)(i); and
       ``(C) publicly report the results of the academic 
     assessments implemented under subparagraph (A) and whether 
     the programs at the Clerc Center are making adequate yearly 
     progress, as determined under subparagraph (B).''.

     SEC. 902. AGREEMENT WITH GALLAUDET UNIVERSITY.

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

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

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

[[Page 19956]]

       (A) in paragraph (1)--
       (i) in the first sentence--

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

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

     SEC. 904. CULTURAL EXPERIENCES GRANTS.

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

                        ``PART C--OTHER PROGRAMS

     ``SEC. 121. CULTURAL EXPERIENCES GRANTS.

       ``(a) In General.--The Secretary shall, on a competitive 
     basis, make grants to, and enter into contracts and 
     cooperative agreements with, eligible entities to support the 
     activities described in subsection (b).
       ``(b) Activities.--In carrying out this section, the 
     Secretary shall support activities providing cultural 
     experiences, through appropriate nonprofit organizations with 
     a demonstrated proficiency in providing such activities, 
     that--
       ``(1) enrich the lives of deaf and hard-of-hearing children 
     and adults;
       ``(2) increase public awareness and understanding of 
     deafness and of the artistic and intellectual achievements of 
     deaf and hard-of-hearing persons; or
       ``(3) promote the integration of hearing, deaf, and hard-
     of-hearing persons through shared cultural, educational, and 
     social experiences.
       ``(c) Applications.--An eligible entity that desires to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2007 and each of the 
     5 succeeding fiscal years.''.
       (b) Conforming Amendment.--The title heading of title I of 
     the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et 
     seq.) is amended by adding at the end ``; OTHER PROGRAMS''.

     SEC. 905. AUDIT.

       Section 203 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4353) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2), by striking ``sections'' and all that 
     follows through the period and inserting ``sections 102(b), 
     105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c) 
     through (f) of section 207, and subsections (b) and (c) of 
     section 209.''; and
       (B) in paragraph (3), by inserting ``and the Committee on 
     Education and Labor of the House of Representatives and the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate'' after ``Secretary''; and
       (2) in subsection (c)(2)(A), by striking ``Committee on 
     Labor and Human Resources of the Senate'' and inserting 
     ``Committee on Health, Education, Labor, and Pensions of the 
     Senate''.

     SEC. 906. REPORTS.

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

     SEC. 907. MONITORING, EVALUATION, AND REPORTING.

       Section 205 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4355) is amended--
       (1) in subsection (b), by striking ``The Secretary, as part 
     of the annual report required under section 426 of the 
     Department of Education Organization Act, shall include a 
     description of'' and inserting ``The Secretary shall annually 
     transmit information to Congress on''; and
       (2) in subsection (c), by striking ``fiscal years 1998 
     through 2003'' and inserting ``fiscal years 2008 through 
     2013''.

     SEC. 908. LIAISON FOR EDUCATIONAL PROGRAMS.

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

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

       Section 207(h) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4357(h)) is amended by striking ``fiscal years 1998 
     through 2003'' each place it appears and inserting ``fiscal 
     years 2008 through 2013''.

     SEC. 910. OVERSIGHT AND EFFECT OF AGREEMENTS.

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

     SEC. 911. INTERNATIONAL STUDENTS.

       Section 209 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4359a) is amended--
       (1) in subsection (a)--
       (A) by striking ``preparatory, undergraduate,'' and 
     inserting ``undergraduate'';
       (B) by striking ``Effective with'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), 
     effective with''; and
       (C) by adding at the end the following:
       ``(2) Distance learning.--International students who 
     participate in distance learning courses that are at NTID or 
     the University and who are residing outside of the United 
     States shall--
       ``(A) not be counted as international students for purposes 
     of the cap on international students under paragraph (1), 
     except that in any school year no United States citizen who 
     applies to participate in distance learning courses that are 
     at the University or NTID shall be denied participation in 
     such courses because of the participation of an international 
     student in such courses; and
       ``(B) not be charged a tuition surcharge, as described in 
     subsection (b).''; and
       (2) by striking subsections (b), (c), and (d), and 
     inserting the following:
       ``(b) Tuition Surcharge.--Except as provided in subsections 
     (a)(2)(B) and (c), the tuition for postsecondary 
     international students enrolled in the University (including 
     undergraduate and graduate students) or NTID shall include, 
     for academic year 2008-2009 and any succeeding academic year, 
     a surcharge of--
       ``(1) 100 percent for a postsecondary international student 
     from a non-developing country; and
       ``(2) 50 percent for a postsecondary international student 
     from a developing country.
       ``(c) Reduction of Surcharge.--
       ``(1) In general.--Beginning with the academic year 2008-
     2009, the University or NTID may reduce the surcharge--
       ``(A) under subsection (b)(1) from 100 percent to not less 
     than 50 percent if--
       ``(i) a student described under subsection (b)(1) 
     demonstrates need; and
       ``(ii) such student has made a good faith effort to secure 
     aid through such student's government or other sources; and
       ``(B) under subsection (b)(2) from 50 percent to not less 
     than 25 percent if--
       ``(i) a student described under subsection (b)(2) 
     demonstrates need; and
       ``(ii) such student has made a good faith effort to secure 
     aid through such student's government or other sources.
       ``(2) Development of sliding scale.--The University and 
     NTID shall develop a sliding scale model that--
       ``(A) will be used to determine the amount of a tuition 
     surcharge reduction pursuant to paragraph (1); and
       ``(B) shall be approved by the Secretary.
       ``(d) Definition.--In this section, the term `developing 
     country' means a country with a per-capita income of not more 
     than $4,825, measured in 1999 United States dollars, as 
     adjusted by the Secretary to reflect inflation since 1999.''.

     SEC. 912. RESEARCH PRIORITIES.

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

     SEC. 913. AUTHORIZATION OF APPROPRIATIONS.

       Section 212 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4360a) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``fiscal years 1998 through 2003'' and 
     inserting ``fiscal years 2008 through 2013''; and
       (2) in subsection (b), by striking ``fiscal years 1998 
     through 2003'' and inserting ``fiscal years 2008 through 
     2013''.

              PART B--UNITED STATES INSTITUTE OF PEACE ACT

     SEC. 921. UNITED STATES INSTITUTE OF PEACE ACT.

       (a) Powers and Duties.--Section 1705(b)(3) of the United 
     States Institute of Peace Act (22

[[Page 19957]]

     U.S.C. 4604(b)(3)) is amended by striking ``the Arms Control 
     and Disarmament Agency,''.
       (b) Board of Directors.--Section 1706 of the United States 
     Institute of Peace Act (22 U.S.C. 4605) is amended--
       (1) by striking ``(b)(5)'' each place the term appears and 
     inserting ``(b)(4)''; and
       (2) in subsection (e), by adding at the end the following:
       ``(5) The term of a member of the Board shall not commence 
     until the member is confirmed by the Senate and sworn in as a 
     member of the Board.''.
       (c) Funding.--Section 1710 of the United States Institute 
     of Peace Act (22 U.S.C. 4609) is amended--
       (1) by striking ``to be appropriated'' and all that follows 
     through the period at the end and inserting ``to be 
     appropriated such sums as may be necessary for fiscal years 
     2008 through 2013.''; and
       (2) by adding at the end the following:
       ``(d) Extension.--Any authorization of appropriations made 
     for the purposes of carrying out this title shall be extended 
     in the same manner as applicable programs are extended under 
     section 422 of the General Education Provisions Act.''.

            PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998

     SEC. 931. REPEALS.

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

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

       Section 821 of the Higher Education Amendments of 1998 (20 
     U.S.C. 1151) is amended to read as follows:

     ``SEC. 821. GRANTS TO STATES FOR IMPROVED WORKPLACE AND 
                   COMMUNITY TRANSITION TRAINING FOR INCARCERATED 
                   YOUTH OFFENDERS.

       ``(a) Definition.--In this section, the term `youth 
     offender' means a male or female offender under the age of 
     35, who is incarcerated in a State prison, including a 
     prerelease facility.
       ``(b) Grant Program.--The Secretary of Education (in this 
     section referred to as the `Secretary')--
       ``(1) shall establish a program in accordance with this 
     section to provide grants to the State correctional education 
     agencies in the States, from allocations for the States under 
     subsection (h), to assist and encourage youth offenders to 
     acquire functional literacy, life, and job skills, through--
       ``(A) the pursuit of a postsecondary education certificate, 
     or an associate or bachelor's degree while in prison; and
       ``(B) employment counseling and other related services 
     which start during incarceration and end not later than 1 
     year after release from confinement; and
       ``(2) may establish such performance objectives and 
     reporting requirements for State correctional education 
     agencies receiving grants under this section as the Secretary 
     determines are necessary to assess the effectiveness of the 
     program under this section.
       ``(c) Application.--To be eligible for a grant under this 
     section, a State correctional education agency shall submit 
     to the Secretary a proposal for a youth offender program 
     that--
       ``(1) identifies the scope of the problem, including the 
     number of youth offenders in need of postsecondary education 
     and vocational training;
       ``(2) lists the accredited public or private educational 
     institution or institutions that will provide postsecondary 
     educational services;
       ``(3) lists the cooperating agencies, public and private, 
     or businesses that will provide related services, such as 
     counseling in the areas of career development, substance 
     abuse, health, and parenting skills;
       ``(4) describes specific performance objectives and 
     evaluation methods (in addition to, and consistent with, any 
     objectives established by the Secretary under subsection 
     (b)(2)) that the State correctional education agency will use 
     in carrying out its proposal, including--
       ``(A) specific and quantified student outcome measures that 
     are referenced to outcomes for non-program participants with 
     similar demographic characteristics; and
       ``(B) measures, consistent with the data elements and 
     definitions described in subsection (d)(1)(A), of--
       ``(i) program completion, including an explicit definition 
     of what constitutes a program completion within the proposal;
       ``(ii) knowledge and skill attainment, including 
     specification of instruments that will measure knowledge and 
     skill attainment;
       ``(iii) attainment of employment both prior to and 
     subsequent to release;
       ``(iv) success in employment indicated by job retention and 
     advancement; and
       ``(v) recidivism, including such subindicators as time 
     before subsequent offense and severity of offense;
       ``(5) describes how the proposed programs are to be 
     integrated with existing State correctional education 
     programs (such as adult education, graduate education degree 
     programs, and vocational training) and State industry 
     programs;
       ``(6) describes how the proposed programs will have 
     considered or will utilize technology to deliver the services 
     under this section; and
       ``(7) describes how students will be selected so that only 
     youth offenders eligible under subsection (e) will be 
     enrolled in postsecondary programs.
       ``(d) Program Requirements.--Each State correctional 
     education agency receiving a grant under this section shall--
       ``(1) annually report to the Secretary regarding--
       ``(A) the results of the evaluations conducted using data 
     elements and definitions provided by the Secretary for the 
     use of State correctional education programs;
       ``(B) any objectives or requirements established by the 
     Secretary pursuant to subsection (b)(2); and
       ``(C) the additional performance objectives and evaluation 
     methods contained in the proposal described in subsection 
     (c)(4) as necessary to document the attainment of project 
     performance objectives; and
       ``(2) provide to each State for each student eligible under 
     subsection (e) not more than--
       ``(A) $3,000 annually for tuition, books, and essential 
     materials; and
       ``(B) $300 annually for related services such as career 
     development, substance abuse counseling, parenting skills 
     training, and health education.
       ``(e) Student Eligibility.--A youth offender shall be 
     eligible for participation in a program receiving a grant 
     under this section if the youth offender--
       ``(1) is eligible to be released within 5 years (including 
     a youth offender who is eligible for parole within such 
     time);
       ``(2) is 35 years of age or younger; and
       ``(3) has not been convicted of--
       ``(A) a `criminal offense against a victim who is a minor' 
     or a `sexually violent offense', as such terms are defined in 
     the Jacob Wetterling Crimes Against Children and Sexually 
     Violent Offender Registration Act (42 U.S.C. 14071 et seq.); 
     or
       ``(B) murder, as described in section 1111 of title 18, 
     United States Code.
       ``(f) Length of Participation.--A State correctional 
     education agency receiving a grant under this section shall 
     provide educational and related services to each 
     participating youth offender for a period not to exceed 5 
     years, 1 year of which may be devoted to study in a graduate 
     education degree program or to remedial education services 
     for students who have obtained a secondary school diploma or 
     its recognized equivalent. Educational and related services 
     shall start during the period of incarceration in prison or 
     prerelease, and the related services may continue for not 
     more than 1 year after release from confinement.
       ``(g) Education Delivery Systems.--State correctional 
     education agencies and cooperating institutions shall, to the 
     extent practicable, use high-tech applications in developing 
     programs to meet the requirements and goals of this section.
       ``(h) Allocation of Funds.--From the funds appropriated 
     pursuant to subsection (i) for each fiscal year, the 
     Secretary shall allot to each State an amount that bears the 
     same relationship to such funds as the total number of 
     students eligible under subsection (e) in such State bears to 
     the total number of such students in all States.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal years 2008 through 
     2013.''.

     SEC. 933. UNDERGROUND RAILROAD EDUCATIONAL AND CULTURAL 
                   PROGRAM.

       Section 841(c) of the Higher Education Amendments of 1998 
     (20 U.S.C. 1153(c)) is amended by striking ``this section'' 
     and all that follows through the period at the end and 
     inserting ``this section such sums as may be necessary for 
     fiscal years 2008 through 2013.''.

     SEC. 934. OLYMPIC SCHOLARSHIPS UNDER THE HIGHER EDUCATION 
                   AMENDMENTS OF 1992.

       Section 1543(d) of the Higher Education Amendments of 1992 
     (20 U.S.C. 1070 note) is amended by striking ``to be 
     appropriated'' and all that follows through the period at the 
     end and inserting ``to be appropriated such sums as may be 
     necessary for fiscal years 2008 through 2013.''.

                        PART D--INDIAN EDUCATION

              Subpart 1--Tribal Colleges and Universities

     SEC. 941. REAUTHORIZATION OF THE TRIBALLY CONTROLLED COLLEGE 
                   OR UNIVERSITY ASSISTANCE ACT OF 1978.

       (a) Clarification of the Definition of National Indian 
     Organization.--Section 2(a)(6) of the Tribally Controlled 
     College or University Assistance Act of 1978 (25 U.S.C. 
     1801(a)(6)) is amended by striking ``in the field of Indian 
     education'' and inserting ``in the fields of tribally 
     controlled colleges and universities and Indian higher 
     education''.
       (b) Indian Student Count.--Section 2(a) of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1801(a)) is amended--
       (1) by redesignating paragraphs (7) and (8) as paragraphs 
     (8) and (9), respectively; and
       (2) by inserting after paragraph (6) the following:
       ``(7) `Indian student' means a student who is--
       ``(A) a member of an Indian tribe; or
       ``(B) a biological child of a member of an Indian tribe, 
     living or deceased;''.
       (c) Continuing Education.--Section 2(b) of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1801(b)) is amended--

[[Page 19958]]

       (1) in the matter preceding paragraph (1), by striking 
     ``paragraph (7) of subsection (a)'' and inserting 
     ``subsection (a)(8)'';
       (2) by striking paragraph (5) and inserting the following:
       ``(5) Determination of credits.--Eligible credits earned in 
     a continuing education program--
       ``(A) shall be determined as 1 credit for every 10 contact 
     hours in the case of an institution on a quarter system, or 
     15 contact hours in the case of an institution on a semester 
     system, of participation in an organized continuing education 
     experience under responsible sponsorship, capable direction, 
     and qualified instruction, as described in the criteria 
     established by the International Association for Continuing 
     Education and Training; and
       ``(B) shall be limited to 10 percent of the Indian student 
     count of a tribally controlled college or university.''; and
       (3) by striking paragraph (6).
       (d) Accreditation Requirement.--Section 103 of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1804) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after paragraph (3), the following:
       ``(4)(A) is accredited by a nationally recognized 
     accrediting agency or association determined by the Secretary 
     of Education to be a reliable authority with regard to the 
     quality of training offered; or
       ``(B) according to such an agency or association, is making 
     reasonable progress toward accreditation.''.
       (e) Technical Assistance Contracts.--Section 105 of the 
     Tribally Controlled College or University Assistance Act of 
     1978 (25 U.S.C. 1805) is amended--
       (1) by striking the section designation and heading and all 
     that follows through ``The Secretary shall'' and inserting 
     the following:

     ``SEC. 105. TECHNICAL ASSISTANCE CONTRACTS.

       ``(a) Technical Assistance.--
       ``(1) In general.--The Secretary shall'';
       (2) in the second sentence, by striking ``In the awarding 
     of contracts for technical assistance, preference shall be 
     given'' and inserting the following:
       ``(2) Designated organization.--The Secretary shall require 
     that a contract for technical assistance under paragraph (1) 
     shall be awarded''; and
       (3) in the third sentence, by striking ``No authority'' and 
     inserting the following:
       ``(b) Effect of Section.--No authority''.
       (f) Amount of Grants.--Section 108(a) of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1808(a)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting the 
     subparagraphs appropriately;
       (2) by striking ``(a) Except as provided in section 111,'' 
     and inserting the following:
       ``(a) Requirement.--
       ``(1) In general.--Except as provided in paragraph (2) and 
     section 111,'';
       (3) in paragraph (1) (as redesignated by paragraphs (1) and 
     (2))--
       (A) in the matter preceding subparagraph (A) (as 
     redesignated by paragraph (1))--
       (i) by striking ``him'' and inserting ``the Secretary''; 
     and
       (ii) by striking ``product of'' and inserting ``product 
     obtained by multiplying'';
       (B) in subparagraph (A) (as redesignated by paragraph (1)), 
     by striking ``section 2(a)(7)'' and inserting ``section 
     2(a)(8)''; and
       (C) in subparagraph (B) (as redesignated by paragraph (1)), 
     by striking ``$6,000,'' and inserting ``$8,000, as adjusted 
     annually for inflation.''; and
       (4) by striking ``except that no grant shall exceed the 
     total cost of the education program provided by such college 
     or university.'' and inserting the following:
       ``(2) Exception.--The amount of a grant under paragraph (1) 
     shall not exceed an amount equal to the total cost of the 
     education program provided by the applicable tribally 
     controlled college or university.''.
       (g) General Provisions Reauthorization.--Section 110(a) of 
     the Tribally Controlled College or University Assistance Act 
     of 1978 (25 U.S.C. 1810(a)) is amended--
       (1) in paragraphs (1), (2), (3), and (4), by striking 
     ``1999'' and inserting ``2008'';
       (2) in paragraphs (1), (2), and (3), by striking ``4 
     succeeding'' and inserting ``5 succeeding'';
       (3) in paragraph (2), by striking ``$40,000,000'' and 
     inserting ``such sums as may be necessary'';
       (4) in paragraph (3), by striking ``$10,000,000'' and 
     inserting ``such sums as may be necessary''; and
       (5) in paragraph (4), by striking ``succeeding 4'' and 
     inserting ``5 succeeding''.
       (h) Endowment Program Reauthorization.--Section 306(a) of 
     the Tribally Controlled College or University Assistance Act 
     of 1978 (25 U.S.C. 1836(a)) is amended--
       (1) by striking ``1999'' and inserting ``2008''; and
       (2) by striking ``4 succeeding'' and inserting ``5 
     succeeding''.
       (i) Tribal Economic Development Reauthorization.--Section 
     403 of the Tribal Economic Development and Technology Related 
     Education Assistance Act of 1990 (25 U.S.C. 1852) is 
     amended--
       (1) by striking ``$2,000,000 for fiscal year 1999'' and 
     inserting ``such sums as may be necessary for fiscal year 
     2008''; and
       (2) by striking ``4 succeeding'' and inserting ``5 
     succeeding''.
       (j) Tribally Controlled Postsecondary Career and Technical 
     Institutions.--
       (1) In general.--The Tribally Controlled College or 
     University Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is 
     amended by adding at the end the following:

 ``Subtitle V--Tribally Controlled Postsecondary Career and Technical 
                              Institutions

     ``SEC. 501. DEFINITION OF TRIBALLY CONTROLLED POSTSECONDARY 
                   CAREER AND TECHNICAL INSTITUTION.

       ``In this title, the term `tribally controlled 
     postsecondary career and technical institution' has the 
     meaning given the term in section 3 of the Carl D. Perkins 
     Career and Technical Education Act of 2006 (20 U.S.C. 2302).

     ``SEC. 502. TRIBALLY CONTROLLED POSTSECONDARY CAREER AND 
                   TECHNICAL INSTITUTIONS PROGRAM.

       ``(a) In General.--Subject to the availability of 
     appropriations, for fiscal year 2008 and each fiscal year 
     thereafter, the Secretary shall--
       ``(1) subject to subsection (b), select 2 tribally 
     controlled postsecondary career and technical institutions to 
     receive assistance under this title; and
       ``(2) provide funding to the selected tribally controlled 
     postsecondary career and technical institutions to pay the 
     costs (including institutional support costs) of operating 
     postsecondary career and technical education programs for 
     Indian students at the tribally controlled postsecondary 
     career and technical institutions.
       ``(b) Selection of Certain Institutions.--
       ``(1) Requirement.--For each fiscal year during which the 
     Secretary determines that a tribally controlled postsecondary 
     career and technical institution described in paragraph (2) 
     meets the definition referred to in section 501, the 
     Secretary shall select that tribally controlled postsecondary 
     career and technical institution under subsection (a)(1) to 
     receive funding under this section.
       ``(2) Institutions.--The 2 tribally controlled 
     postsecondary career and technical institutions referred to 
     in paragraph (1) are--
       ``(A) the United Tribes Technical College; and
       ``(B) the Navajo Technical College.
       ``(c) Method of Payment.--For each applicable fiscal year, 
     the Secretary shall provide funding under this section to 
     each tribally controlled postsecondary career and technical 
     institution selected for the fiscal year under subsection 
     (a)(1) in a lump sum payment for the fiscal year.
       ``(d) Distribution.--
       ``(1) In general.--For fiscal year 2009 and each fiscal 
     year thereafter, of amounts made available pursuant to 
     section 504, the Secretary shall distribute to each tribally 
     controlled postsecondary career and technical institution 
     selected for the fiscal year under subsection (a)(1) an 
     amount equal to the greater of--
       ``(A) the total amount appropriated for the tribally 
     controlled postsecondary career and technical institution for 
     fiscal year 2006; or
       ``(B) the total amount appropriated for the tribally 
     controlled postsecondary career and technical institution for 
     fiscal year 2008.
       ``(2) Excess amounts.--If, for any fiscal year, the amount 
     made available pursuant to section 504 exceeds the sum of the 
     amounts required to be distributed under paragraph (1) to the 
     tribally controlled postsecondary career and technical 
     institutions selected for the fiscal year under subsection 
     (a)(1), the Secretary shall distribute to each tribally 
     controlled postsecondary career and technical institution 
     selected for that fiscal year a portion of the excess amount, 
     to be determined by--
       ``(A) dividing the excess amount by the aggregate Indian 
     student count (as defined in section 117(h) of the Carl D. 
     Perkins Career and Technical Education Act of 2006 (20 U.S.C. 
     2327(h)) of such institutions for the prior academic year; 
     and
       ``(B) multiplying the quotient described in subparagraph 
     (A) by the Indian student count of each such institution for 
     the prior academic year.

     ``SEC. 503. APPLICABILITY OF OTHER LAWS.

       ``(a) In General.--Paragraphs (4) and (7) of subsection 
     (a), and subsection (b), of section 2, sections 105, 108, 
     111, 112 and 113, and titles II, III, and IV shall not apply 
     to this title.
       ``(b) Indian Self-Determination and Education Assistance.--
     Funds made available pursuant to this title shall be subject 
     to the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450 et seq.).
       ``(c) Election to Receive.--A tribally controlled 
     postsecondary career and technical institution selected for a 
     fiscal year under section 502(b) may elect to receive funds 
     pursuant to section 502 in accordance with an agreement 
     between the tribally controlled postsecondary career and 
     technical institution and the Secretary under the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450 et seq.) if the agreement is in existence on the date of 
     enactment of the Higher Education Amendments of 2007.
       ``(d) Other Assistance.--Eligibility for, or receipt of, 
     assistance under this title shall not preclude the 
     eligibility of a tribally controlled postsecondary career and 
     technical institutions to receive Federal financial 
     assistance under--
       ``(1) any program under the Higher Education Act of 1965 
     (20 U.S.C. 1001 et seq.);
       ``(2) any program under the Carl D. Perkins Career and 
     Technical Education Act of 2006; or
       ``(3) any other applicable program under which a benefit is 
     provided for--

[[Page 19959]]

       ``(A) institutions of higher education;
       ``(B) community colleges; or
       ``(C) postsecondary educational institutions.

     ``SEC. 504. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary for fiscal year 2008 and each fiscal year 
     thereafter to carry out this title.''.
       (2) Conforming amendments.--Section 117 of the Carl D. 
     Perkins Career and Technical Education Act of 2006 (20 U.S.C. 
     2327) is amended--
       (A) by striking subsection (a) and inserting the following:
       ``(a) Grant Program.--Subject to the availability of 
     appropriations, the Secretary shall make grants under this 
     section, to provide basic support for the education and 
     training of Indian students, to tribally controlled 
     postsecondary career and technical institutions that are not 
     receiving Federal assistance as of the date on which the 
     grant is provided under--
       ``(1) title I of the Tribally Controlled College or 
     University Assistance Act of 1978 (25 U.S.C. 1802 et seq.); 
     or
       ``(2) the Navajo Community College Act (25 U.S.C. 640a et 
     seq.).''; and
       (B) by striking subsection (d) and inserting the following:
       ``(d) Applications.--To be eligible to receive a grant 
     under this section, a tribally controlled postsecondary 
     career and technical institution that is not receiving 
     Federal assistance under title I of the Tribally Controlled 
     College or University Assistance Act (25 U.S.C. 1802 et seq.) 
     or the Navajo Community College Act (25 U.S.C. 640a et seq.) 
     shall submit to the Secretary an application at such time, in 
     such manner, and containing such information as the Secretary 
     may require.''.
       (k) Short Title.--
       (1) In general.--The first section of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1801 note; Public Law 95-471) is amended to read as 
     follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Tribally Controlled 
     Colleges and Universities Assistance Act of 1978'.''.
       (2) References.--Any reference in law (including 
     regulations) to the Tribally Controlled College or University 
     Assistance Act of 1978 shall be considered to be a reference 
     to the ``Tribally Controlled Colleges and Universities 
     Assistance Act of 1978''.

                   Subpart 2--Navajo Higher Education

     SEC. 945. SHORT TITLE.

       This subpart may be cited as the ``Navajo Nation Higher 
     Education Act of 2006''.

     SEC. 946. REAUTHORIZATION OF NAVAJO COMMUNITY COLLEGE ACT.

       (a) Purpose.--Section 2 of the Navajo Community College Act 
     (25 U.S.C. 640a) is amended--
       (1) by striking ``Navajo Tribe of Indians'' and inserting 
     ``Navajo Nation''; and
       (2) by striking ``the Navajo Community College'' and 
     inserting ``Dine College''.
       (b) Grants.--Section 3 of the Navajo Community College Act 
     (25 U.S.C. 640b) is amended--
       (1) in the first sentence--
       (A) by inserting ``the'' before ``Interior'';
       (B) by striking ``Navajo Tribe of Indians'' and inserting 
     ``Navajo Nation''; and
       (C) by striking ``the Navajo Community College'' and 
     inserting ``Dine College''; and
       (2) in the second sentence--
       (A) by striking ``Navajo Tribe'' and inserting ``Navajo 
     Nation''; and
       (B) by striking ``Navajo Indians'' and inserting ``Navajo 
     people''.
       (c) Study of Facilities Needs.--Section 4 of the Navajo 
     Community College Act (25 U.S.C. 640c) is amended--
       (1) in subsection (a)--
       (A) in the first sentence--
       (i) by striking ``the Navajo Community College'' and 
     inserting ``Dine College''; and
       (ii) by striking ``August 1, 1979'' and inserting ``October 
     31, 2010''; and
       (B) in the second sentence, by striking ``Navajo Tribe'' 
     and inserting ``Navajo Nation'';
       (2) in subsection (b), by striking ``the date of enactment 
     of the Tribally Controlled Community College Assistance Act 
     of 1978'' and inserting ``October 1, 2007''; and
       (3) in subsection (c), in the first sentence, by striking 
     ``the Navajo Community College'' and inserting ``Dine 
     College''.
       (d) Authorization of Appropriations.--Section 5 of the 
     Navajo Community College Act (25 U.S.C. 640c-1) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``$2,000,000'' and all 
     that follows through the end of the paragraph and inserting 
     ``such sums as are necessary for fiscal years 2008 through 
     2013.''; and
       (B) by adding at the end the following:
       ``(3) Sums described in paragraph (2) shall be used to 
     provide grants for construction activities, including the 
     construction of buildings, water and sewer facilities, roads, 
     information technology and telecommunications infrastructure, 
     classrooms, and external structures (such as walkways).'';
       (2) in subsection (b)(1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``the Navajo Community College'' and 
     inserting ``Dine College''; and
       (ii) by striking ``, for each fiscal year'' and all that 
     follows through ``for--'' and inserting ``such sums as are 
     necessary for fiscal years 2008 through 2013 to pay the cost 
     of--'';
       (B) in subparagraph (A)--
       (i) by striking ``college'' and inserting ``College'';
       (ii) in clauses (i) and (iii), by striking the commas at 
     the ends of the clauses and inserting semicolons; and
       (iii) in clause (ii), by striking ``, and'' at the end and 
     inserting ``; and'';
       (C) in subparagraph (B), by striking the comma at the end 
     and inserting a semicolon;
       (D) in subparagraph (C), by striking ``, and'' at the end 
     and inserting a semicolon;
       (E) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (F) by adding at the end the following:
       ``(E) improving and expanding the College, including by 
     providing, for the Navajo people and others in the community 
     of the College--
       ``(i) higher education programs;
       ``(ii) career and technical education;
       ``(iii) activities relating to the preservation and 
     protection of the Navajo language, philosophy, and culture;
       ``(iv) employment and training opportunities;
       ``(v) economic development and community outreach; and
       ``(vi) a safe learning, working, and living environment.''; 
     and
       (3) in subsection (c), by striking ``the Navajo Community 
     College'' and inserting ``Dine College''.
       (e) Effect on Other Laws.--Section 6 of the Navajo 
     Community College Act (25 U.S.C. 640c-2) is amended--
       (1) by striking ``the Navajo Community College'' each place 
     it appears and inserting ``Dine College''; and
       (2) in subsection (b), by striking ``college'' and 
     inserting ``College''.
       (f) Payments; Interest.--Section 7 of the Navajo Community 
     College Act (25 U.S.C. 640c-3) is amended by striking ``the 
     Navajo Community College'' each place it appears and 
     inserting ``Dine College''.

  The ACTING PRESIDENT pro tempore. The Senator from Wyoming is 
recognized.
  Mr. ENZI. Mr. President, I am going to speak a little bit about this 
very important bill, S. 1642, the Higher Education Amendments Act of 
2007. This legislation is a bipartisan product of 3 years of 
negotiations by the members of the Senate Health, Education, Labor and 
Pensions Committee, or the HELP Committee. It builds on the legislation 
the HELP Committee passed in the 109th Congress.
  It is important to note that the legislation before us today is not a 
Democratic or a Republican bill; it is a bipartisan bill. We worked on 
it carefully. We made sure that parts which were objectionable to 
either side were eliminated or a third way found, and as a result of 
that very congenial process, it has gotten us to this point where we 
are on the floor with the bill.
  Following the bill we had last week, which also dealt with higher 
education--more with the funding issues--this bill covers a number of 
the other issues. But Republican Senators were able to secure changes 
to the Higher Education Act that were important to them, as were 
Democratic Senators.
  Our committee works a little differently than a lot of the 
committees. We use the committee markup to see what the objections are 
to a bill, the intensity of those objections, and identify possible 
solutions. Then, once the bill has been marked up, we will get together 
a managers' package that will overcome any remaining objections. I am 
pleased with the effort that has gone into this bill since markup. We 
worked together to bring to the floor a piece of legislation that can 
be supported by the most liberal and the most conservative Members of 
the Senate.
  I am pleased we are taking up this bill today. The companion 
legislation, the Higher Education Access Reconciliation Act of 2007, 
passed the Senate last week, as I mentioned. My colleagues heard me say 
over and over again last week that the reconciliation bill was only a 
small piece of the Higher Education Act. Without considering both 
bills, we would only be doing part of the job.
  I wish to thank my leadership for hearing me and my Republican 
colleagues on the HELP Committee when we requested that both these 
bills be considered sequentially.
  At this point, I ask unanimous consent to have printed in the Record 
and sent to the desk the letter several of us sent requesting that both 
these higher education bills be considered together.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


[[Page 19960]]




                                                  U.S. Senate,

                                    Washington, DC, July 12, 2007.
     Hon. Harry Reid,
     Majority Leader, U.S. Senate, Hart Senate Office Building, 
         Washington, DC.
     Hon. Mitch McConnell,
     Minority Leader, U.S. Senate, Russell Senate Office Building, 
         Washington, DC.
       Dear Senator Reid and Senator McConnell: On June 20th the 
     Committee on Health, Education, Labor and Pensions reported 
     two separate pieces of legislation: S. 1642 the Higher 
     Education Amendments of 2007, which reauthorizes the 
     discretionary programs within the Higher Education Act; and 
     the Higher Education Access Act of 2007, a reconciliation 
     bill that responds to the Budget Resolution adopted earlier 
     this year. This legislative package takes important steps to 
     make college more affordable, while ensuring American 
     students have the knowledge and skills they need to be 
     successful in the 21st century economy.
       Both the reauthorization and reconciliation bills must be 
     considered together on the Senate floor as a comprehensive 
     reform of our laws pertaining to higher education and should 
     not be moved separately. If the Senate moves forward with 
     just the Higher Education Access Act, which as a budget bill 
     has a privileged status, we lose an important opportunity to 
     pass essential bipartisan reforms contained in the Higher 
     Education Amendments bill. The reforms in the reauthorization 
     bill include: simplifying the student aid application 
     process; authorizing a year-round Pell Grant to better serve 
     non-traditional students; and expanding graduate programs at 
     Historically Black Colleges and Universities and Hispanic 
     Serving Institutions. More importantly, moving the 
     reconciliation bill without the reauthorization bill would 
     result in making significant cuts to education subsidies, 
     while ignoring important ethical, privacy, and disclosure 
     requirements taken from Republican bills. We believe these 
     new requirements as contained in the reauthorization bill are 
     necessary to protect students from those who would exploit 
     loan programs.
       We will only be doing half our job if we allow the 
     reconciliation bill to move forward without the companion 
     reauthorization bill. Such a piecemeal approach to reforming 
     higher education is inadequate. The Senate must ensure an 
     ample and meaningful debate on both bills at the same time so 
     that the vital reforms to higher education are given the 
     attention and scrutiny that they warrant. We urge you to take 
     a comprehensive approach to addressing the challenges facing 
     higher education and our status as a world economic leader by 
     moving both of these bills together on the floor.
           Sincerely,
         Michael B. Enzi, Judd Gregg, Lamar Alexander, Pat 
           Roberts, Richard Burr, Orrin Hatch, Johnny Isakson, 
           Wayne Allard, Lisa Murkowski.

  Mr. ENZI. Mr. President, today we are going to consider the rest of 
the higher education pie--the foundation of the programs we discussed 
last week. I believe that without considering both pieces of 
legislation, we will not make the changes necessary to help students 
enter into and succeed in higher education.
  These are all of the pieces of the higher education pie. We see the 
little red triangle there; that is the reconciliation piece which we 
did last week, and it deals with the Pell grant funding, primarily. 
This bill deals with the other pie pieces we see on this chart.
  ACG, the Academic Competitiveness grants, and the SMART grants, are 
grants to students who will specialize in science, technology, 
engineering, math, and some selected languages. These grants provide 
extra support above the Pell grants, and that is so we turn out the 
kind of people we need in technical fields to keep the innovation in 
the United States going. We passed the America COMPETES package that 
ties in with this.
  Teacher quality. The key to a classroom is the teacher. We had to 
have a piece in there that would encourage teachers and get them extra 
instruction so they can be better teachers.
  FAFSA simplification. There are a lot of people who have not applied 
for grants because the process is so difficult. You probably saw us 
last week mention that this was the application--actually, these are 
the instructions; the applications are equally as long. We have been 
able, through this bill, to reduce that to a very simple form for 
students to be able to fill out to see if they can qualify for the 
Federal help that is available. There is significant Federal help 
available, and we don't want anybody not attending higher education, 
whether it be college or technical school, because they don't have the 
resources for it. We are trying to provide the resources, and now we 
are trying to make sure the process isn't so difficult that people skip 
the process and skip higher education. We need the technical skills 
that are provided by a higher education, a higher level of thought. So 
we now have a much easier form.
  You will also find some little improvements, such as if you do work 
while you are in junior high and high school and you earn and save some 
money, you won't be penalized when you apply for college. We want 
people to be saving their money, not spending their money so that it 
doesn't count against them when they go to make the application.
  Graduate and international education, and loan disclosures are also 
included in this bill. There has been quite a bit of emphasis on this 
lately. I was pleased to be able, as an accountant, to provide a lot of 
suggestions for the ways these problems could be handled so that people 
would know exactly what is available and so that companies and colleges 
dealing with loans would do the right thing.
  Pell grants and campus-based aid are a huge part. It complements the 
Pell grant work we did last week, which was essential to what we did in 
the reconciliation bill. And, of course, financial literacy. We 
incorporate that into our work whenever we possibly can. People need to 
know as much about their financial situation as possible. It is 
particularly critical for college students. We don't want them winding 
up in an impossible situation when they graduate. We want them to be 
able to take advantage of the resources available before they enter 
college.
  So we have a lot of pieces that will be completed when we finish the 
day today, and I am convinced we will be able to complete this today. 
We have a limited number of amendments, and many are very reasonable 
and should not be too difficult. We will have discussions on some 
others. We will have a very bipartisan discussion on what can be put in 
the bill to complete it, and we will get it done today.
  Why is that important? This year marks 50 years since Sputnik was 
launched. That launch sparked huge turmoil in this country and worry 
about the knowledge and skills necessary to keep our economy growing 
and competitive. I was in junior high at the time. It was a shock to 
our Nation. Every one of us could recognize it--teachers, parents and, 
probably as important, students, recognized it. Russia was beating us. 
They had put a satellite into orbit. It shocked us. But it also brought 
out that American competitive spirit. We said they were not going to 
beat us. It launched a change in education such as we had not seen in 
the United States in decades, maybe centuries. We were ultimately the 
winners of the space race, but it wasn't just the space race; it was an 
education race. It was the broad range of education the United States 
delved into and the innovation that was brought about at the time that 
put us ahead of Russia. Of course, the Government probably helped 
considerably too. Sputnik had a dramatic effect on our education system 
and made us recognize a high school diploma was no longer just a nice 
thing to have. We could no longer rest on our past successes as a 
Nation. We met the challenge of Sputnik through the National Defense 
Education Act. We looked to education as a path to continued success, 
and we supported an increase in the number of people who would continue 
their education beyond high school, particularly in math, science, 
engineering, and technology.
  We are again being challenged. For millions of Americans, access to 
an affordable college education is the key to their success in the 21st 
century global economy. In the 1950s, skilled jobs comprised 20 percent 
of the U.S. job market. In 2000, 85 percent of all U.S. jobs are 
categorized as skilled. Without some college education, these Americans 
will not have the qualifications for over 90 percent of the new jobs 
being created over the next 10 years. It is estimated that 60 percent 
of tomorrow's jobs will require skills that only 20 percent of today's 
workers possess. We have a huge challenge, not just in K-12 and higher 
education but in continuing education. It is estimated the

[[Page 19961]]

average person leaving college will change careers 14 times. I didn't 
say ``change jobs'' 14 times, I said ``change careers'' 14 times. That 
is the pace at which things are accelerating.
  Here is an even more important statistic. Of those 14 career changes, 
10 of them don't even exist now. So we are educating people for a level 
of jobs that do not exist at the present time. That is quite a 
challenge. In this decade, 40 percent of job growth will be in jobs 
requiring postsecondary education. Those jobs requiring associate 
degrees are growing the fastest. Learning is never over; school is 
never out. Technology is demanding that everybody continue to learn and 
gain skills to remain competitive in the workplace.
  America's ability to compete in a global economy depends increasingly 
on the number of students entering and completing college. Of the 75 
percent of high school seniors who continue their studies, only 50 
percent receive a degree in 5 years after enrolling in college. Only 25 
percent of them receive a bachelor's degree or higher. These numbers, 
incidentally, are even worse for children of low-income families. Among 
eighth graders in 1988, only 16 percent from low-income families 
attained a bachelor's degree by 2000. The fact is that over four times 
as many eighth graders from high-income families attain bachelor's 
degrees than from low-income families. This is using the eighth graders 
from 1988 who should have graduated by 2000.
  On the chart, you can see the level from low to high income who 
completed a bachelor's degree based on family income. Some of that is a 
failure on our part to emphasize to those in the low-income category 
they can do it and they should do it and how they can do it. That is 
part of what this bill does.
  It is important to ensure that more students enroll in college 
prepared to learn and that more students have the support they need to 
complete college with the knowledge and skills to be successful. 
Slightly less than one-third--31 percent--of all public high school 
students are prepared for postsecondary education, as demonstrated by 
the academic courses they pursue. Well-prepared and well-supported 
students are more likely to persist to a degree completion and obtain 
the knowledge and skills they need.
  For years, institutions of higher education and employers have 
expressed their dissatisfaction about the fact that our high school 
graduates need remedial study or training in order to do college-level 
work or to participate in the workforce. Nearly one-third of entering 
college freshmen take at least one remedial course. Each year, 
taxpayers pay an estimated $1 billion to $2 billion to provide remedial 
education to students at our public universities and community 
colleges.
  Our goal should be to keep the cost of college down, expand the 
availability of information, help students and parents make more 
informed decisions, and improve financial literacy across the board so 
students and families have a better understanding of how they can 
manage their loans and monthly payments. Schools and colleges must do 
more to increase accountability and seek efficiencies that bring down 
the cost of postsecondary education.
  S. 1642, the Higher Education Amendments of 2007, refines and focuses 
Federal policy on access, affordability, and accountability. It 
attempts to tackle the complexity of the Federal student data system. 
Right now, filling out the free application for federal student aid 
prevents many students from even considering college. That was never 
our intent. This bill, as I pointed out, reduces the number of 
questions on the FAFSA to those that are necessary to determining the 
need students have for financial assistance. We are making the FAFSA 
less complicated than filling out tax forms, which has not been the 
case in the past. The bill puts us on the path of greater coordination 
between Federal agencies so students and their families will have the 
opportunity to allow information that is already provided to the 
Government through tax forms, be used to complete the FAFSA.
  Also, it is our responsibility to ensure that students and their 
families have the information they need to make informed decisions 
about the investment of time and money they are making to secure a 
college education. The cost of college has risen dramatically and at 
the same time the need for a college education has never been greater. 
Students will receive upfront information about financial decisions 
they are making. Similar information would be provided to them 
periodically throughout their college experience.
  The quality of classroom teacher preparation is critical to the 
education of our K-12 students. The goal of the teacher preparation 
programs supported under this bill is to help teachers be prepared to 
meet the ever-increasing diverse needs of students and to improve 
student achievement.
  The bill also addresses recent concerns that institutions of higher 
education and lenders have not been operating in the best interest of 
students and their families. Although what we have seen are isolated 
incidents, we wish to make sure the confidence in our institutions and 
financial aid advisors is not questioned. We have included requirements 
that institutions establish codes of conduct for how they work with 
lenders and prohibit incentives and other arrangements that would 
appear inappropriate. Students and their parents must have knowledge to 
make informed choices and financial decisions that will impact their 
lives for years to come.
  It is no longer an option whether to pursue college or skills 
certification that is nationally recognized. Everybody needs tools to 
understand and shape their future. Higher education is the onramp to 
success in the global economy, and it is our responsibility to make 
sure everyone can access that opportunity and reach their goals. 
Without a lifetime of education, training, and retraining opportunities 
for everyone, we will not meet our 21st century needs and challenges.
  There is tremendous opportunity in the United States. We recently 
went to India to see why they were winning in some markets and getting 
American jobs, and their method is kind of abhorrent to Americans, and 
it should be. They begin excluding students at very early ages. They 
make the prize very desirable in the end, and that results in lots of 
people pursuing and competing and getting those few opportunities for 
higher education out of that huge population.
  We believe in higher education for anyone who wants it, and the need 
is there. I look forward to the opportunity to discuss this bill and to 
consider the amendments that will be offered. I thank Senator Kennedy 
for working with me and my Republican colleagues in order to bring a 
bipartisan bill to the floor. As he mentioned last week, this is 
essentially the bill he and I worked on the past 2 years and wanted to 
bring to the floor, but were not able to. We now have that opportunity, 
and I am pleased everyone is willing to cooperate and get it done 
quickly.
  As we move forward, I am hopeful we will move forward with both the 
Higher Education Access Act of 2007, the reconciliation bill we passed 
last week, and this bill. The comprehensive reauthorization of both of 
these bills will make a huge difference. There is no reason they cannot 
accompany each other moving forward, as they have on the Senate floor. 
Each complements the other, and without both, the changes made in 
reconciliation will be less meaningful. I encourage the Democratic 
leadership to ensure we don't do just a piece of the pie as we move 
forward; otherwise, as was said last week, ``any way you slice it, 
higher education is left undone.'' We need both pieces to get it done 
right.
  Again, I thank Senator Kennedy and those on the other side of the 
aisle on the committee for their tremendous cooperation, participation, 
focus, and willingness to figure out what we are trying to solve and 
find a way to solve it. We have done a very adequate job with what is 
in this bill.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The Senator from New Mexico is 
recognized.
  Mr. BINGAMAN. Mr. President, I congratulate Senator Kennedy and

[[Page 19962]]

Senator Enzi for their leadership in getting this higher education bill 
to the floor. I know they have worked on it for many years now. As I 
understand it, the current Higher Education Act, which we have had to 
extend, was scheduled to expire in 2004. We are now getting around to 
actually passing a reauthorization of that legislation, which I think 
is very important to do.
  Last week, we overwhelmingly approved the student aid package that 
promises millions of students the ability to afford college. That 
package included more than $17 billion in student aid over 5 years. For 
my State of New Mexico, that translated into $177 million of new aid 
for New Mexico students and their families over the next 5 years.
  I was glad to be part of the committee that prepared that 
legislation. I am glad to see it passed by an overwhelming vote of 78 
to 18. But financial assistance is only one part of the puzzle, as 
Senator Enzi pointed out. We need to do more, and the legislation 
before us today gives us the ability to do more.
  First, we need to do more to address the increasing cost of attending 
college. Second, we need to ensure more students graduate from college 
and are prepared to succeed in this 21st-century global economy. And, 
third, we need to reform the student loan system so it works better for 
students rather than just for lenders.
  I believe this legislation accomplishes all three of those 
objectives.
  These higher education amendments of 2007 have a number of provisions 
designed to address the rising cost of college. We have all talked 
about the rising cost of college. The cost of going to college is 6.3 
percent higher than it was last year, and the average cost of going to 
a 4-year college is $13,000 this year. The bill sets forth a 
comprehensive approach to addressing these problems.
  First, the amendments will establish a higher education price index 
to accurately reflect annual changes in tuition and fees for 
undergraduate students. The Secretary of Education will be required to 
report annually in a national list and in a list for each State a 
ranking of colleges according to the extent of changes they have made 
in their tuition and fees.
  The Secretary is also required to establish a higher education price 
increase watch list in order to hold colleges accountable for their 
rising costs by publicizing those colleges where increases are the 
highest.
  Second, the bill makes significant changes to the financial aid 
process. It makes Pell grants available to students all year round so 
they can take courses during the summer, and they can finish college 
earlier. It will also simplify the forms that these students have to 
complete.
  The bill also removes barriers for students with disabilities and 
students with limited English proficiency so they can apply for 
financial aid.
  These amendments provide a number of types of loan forgiveness, 
scholarships, and fellowship opportunities. Let me mention just a few. 
The bill provides loan forgiveness for early childhood educators, 
including Head Start teachers and preschool program instructors, full-
time faculty members of tribal colleges and universities, school 
librarians, speech and language pathologists, and members of the Armed 
Forces. It authorizes graduate fellowships for minority students and 
women.
  We need to increase the number of students who can succeed and 
graduate from college, and this bill places great emphasis on 
activities that not only help high school students prepare for college 
but help those same students succeed in college and graduate from 
college.
  The higher education amendments improve student academic readiness 
for college by strengthening the GEAR UP and TRIO programs. For 
example, the bill requires GEAR UP partnerships to systematically 
change the way schools prepare students for college. It requires States 
and school districts to encourage more students to enroll in rigorous 
high school course work and emphasizes activities that will support the 
development of college prep curricula, including advanced placement 
courses. The bill also strengthens the TRIO programs by establishing 
outcome criteria for measuring the quality and effectiveness of the 
programs around the country.
  The bill includes a provision that I authored that creates a new 
grant program to assist colleges and universities that serve large 
numbers of Native American students. Currently, there is no particular 
Federal program to assist nontribal schools that provide educational 
services and support to large Native American student populations. We 
have a number of such schools in my home State of New Mexico such as 
San Juan College, University of New Mexico in Gallup, New Mexico State 
University in Grants, and the Eastern New Mexico campus in Ruidoso.
  The bill provides grants to such colleges to improve and expand their 
capacity to serve Native American students through such activities as 
curriculum development, academic instruction, faculty development, 
acquisition of education instruction, research equipment, and a variety 
of other activities.
  The higher education amendments also improve programs for students 
whose families are engaged in migrant and seasonal farm work to enter 
and succeed in college. This is very important.
  In addition, the bill authorizes funding for the Navajo Technical 
College to help pay the costs to operate postsecondary career and 
technical educational programs for Native American students. This 
authorization will significantly increase the Navajo Technical 
College's ability to provide high-quality career and technical training 
to ensure that Native American students graduate with the skills needed 
to succeed in this economy.
  I am also very glad this legislation contains provisions from the 
Next Generation Hispanic-Serving Institutions Act of 2007. This is 
legislation that I introduced, along with Senator Hutchison and others, 
to establish a long overdue Hispanic-serving institution graduate 
program.
  Current law only provides support for 2-year and 4-year colleges. The 
percentage of Hispanic students attending college has increased 
significantly in recent years. Unfortunately, Hispanic students are 
woefully underrepresented in the graduate programs around our country, 
and this legislation will try to help solve that problem.
  The higher education amendments will also require teacher preparation 
programs to substantially improve over the next several years.
  Finally, as we see the price of college rising steadily, an increased 
number of students are forced to rely on loans in order to finance 
their education. We have seen from recent investigations that some 
lenders in the Student Loan Program, and even some financial aid 
officers, have been exploiting the student loan system to the detriment 
of the very students they are meant to help.
  This reauthorization will make a number of very important changes to 
the Student Loan Program. It will ensure that colleges recommend 
lenders to their students based on the best interest of the students 
and not on the self-interests of the financial aid officers.
  Further, it will prohibit payments or gifts or other inducements from 
lenders to colleges or to financial aid administrators that constitute 
a conflict of interest.
  Importantly, it will require colleges to establish and follow a code 
of conduct with respect to student loans.
  Let me reiterate that this is extremely important legislation. I 
commend the majority leader for bringing it to the Senate floor. I 
commend Senator Kennedy and Senator Enzi for their bipartisan effort to 
move this legislation forward. Together with the student aid package 
that we approved last week, this legislation will allow us to make 
college accessible to all and affordable for every family in this 
country. I urge my colleagues to support the bill.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER (Mr. Cardin). Who yields time? The Senator from 
North Dakota is recognized.

[[Page 19963]]




                           Amendment No. 2366

  Mr. DORGAN. Mr. President, I send an amendment to the desk and ask 
for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from North Dakota [Mr. Dorgan] proposes an 
     amendment numbered 2366.

  Mr. DORGAN. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

      (Purpose: To provide for the development of a student loan 
                             clearinghouse)

       At the end of title VIII, add the following:

     SEC. 802. STUDENT LOAN CLEARINGHOUSE.

       (a) Development.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Education shall 
     establish 1 or more clearinghouses of information on student 
     loans (including loans under parts B and D of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1071 et seq. and 
     1087a et seq.) and private loans, for both undergraduate and 
     graduate students) for use by prospective borrowers or any 
     person desiring information regarding available interest 
     rates and other terms from lenders. Such a clearinghouse 
     shall--
       (1) have no affiliation with any institution of higher 
     education or any lender;
       (2) accept nothing of value from any lender, guaranty 
     agency, or any entity affiliated with a lender or guaranty 
     agency, except that the clearinghouse may establish a flat 
     fee to be charged to each listed lender, based on the costs 
     necessary to establish and maintain the clearinghouse;
       (3) provide information regarding the interest rates, fees, 
     borrower benefits, and any other matter that the Department 
     of Education determines relevant to enable prospective 
     borrowers to select a lender;
       (4) provide interest rate information that complies with 
     the Federal Trade Commission guidelines for consumer credit 
     term disclosures; and
       (5) be a nonprofit entity.
       (b) Publication of List.--The Secretary of Education shall 
     publish a list of clearinghouses described in subsection (a) 
     on the website of the Department of Education and such list 
     shall be updated not less often than every 90 days.
       (c) Disclosure.--Beginning on the date the first 
     clearinghouse described in subsection (a) is established, 
     each institution of higher education that receives Federal 
     assistance under the Higher Education Act of 1965 (20 U.S.C. 
     1001 et seq.) and that designates 1 or more lenders as 
     preferred, suggested, or otherwise recommended shall include 
     a standard disclosure developed by the Secretary of Education 
     on all materials that reference such lenders to inform 
     students that the students might find a more attractive loan, 
     with a lower interest rate, by visiting a clearinghouse 
     described in subsection (a).
       (d) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to Congress on whether students 
     are using a clearinghouse described in subsection (a) to find 
     and secure a student loan. The report shall assess whether 
     students could have received a more attractive loan, one with 
     a lower interest rate or better benefits, by using a 
     clearinghouse described in subsection (a) instead of a 
     preferred lender list.

  Mr. DORGAN. Mr. President, I join my colleague from New Mexico in 
commending Senator Kennedy and Senator Enzi for bringing this bill to 
the floor of the Senate. It is important legislation and one that I 
hope we will move to pass very quickly.
  This is about education. I don't know there is a subject much more 
important than education. H.G. Wells once said that human history 
becomes a race between education and catastrophe. Education is so 
unbelievably important. As I was sitting here, I was thinking about 
this amendment and about education and what it means to our country. I 
was thinking about something I have told my colleagues previously.
  The first week I served in the Congress, I served in the U.S. House 
of Representatives. I went to visit, then, the oldest man serving in 
the Congress. I read a lot about him and was interested in him. So I 
went to say hello, to greet him. His name was Claude Pepper from 
Florida. Claude Pepper was an old man by then but a vibrant man 
nonetheless. He had an office that was very much like a museum, full of 
history over the many decades.
  As I indicated before, one of the things I remember about that 
morning walking into Claude Pepper's office was seeing all of his 
memorabilia about his service. But I saw two things that struck me. 
They were behind his chair looking over his desk. There were two 
photographs. One was a photograph of December 17, 1903, Wilbur and 
Orville Wright making the first powered human flight to leave the 
surface of the Earth. It was autographed to Congressman Claude Pepper. 
Before Orville Wright died, he autographed this wonderful photograph of 
that little airplane in the wind in Kitty Hawk, NC, leaving the ground. 
It says: ``To Congressman Claude Pepper, with admiration. Orville 
Wright.'' I thought, this is interesting. I am speaking to a living man 
who has an autographed photograph of the first person to leave the 
ground.
  Beneath that was something just as interesting. It was Neil Armstrong 
setting foot on the Moon autographed ``To Claude Pepper, with 
admiration. Neil Armstrong.'' I thought, these pictures are only about 
4 inches apart in frames, but what is the distance between these 
photographs? From 1903 to 1969, leaving the Earth for the first time in 
human-powered flight and then stepping on the surface of the Moon. What 
is that distance measured in? It is measured in education. It comes 
from this country's education system--knowledge, engineering, science, 
mathematics, the knowledge to build flying machines, to build rockets, 
to build Moon capsules. The basic knowledge comes from our school 
system, from your education system.
  I know we spend a lot of time in this country describing what is 
wrong with education. But the fact is, we are the ones who have split 
the atom and spliced genes. We are the ones who invented the telephone 
and the television and the computer. We are the ones who built 
airplanes and then learned to fly them, built rockets and walked on the 
surface of the Moon, all as a result of the foundation of learning and 
education.
  So the bill comes to the floor of the Senate today saying education 
is a priority, and it is, and we have some issues with education that 
we want to fix because we want to strengthen our educational system. It 
is not that our system is perfect, we know it is not. It needs to be 
strengthened and improved.
  With respect to higher education, we want to encourage every person 
in this country who has an urge to get a college degree, to go to a 
technical school, to go to a vocational school, to be able to advance 
their interests. In doing so, we offer a series of financial 
incentives. For those who have no money, we offer Pell grants. For 
those who have very little money, we offer Stafford loans and direct 
loans. And for those who perhaps do not qualify for the low-income 
components, they have other loan opportunities from private lenders to 
get the money to go to college.
  That is what we want in this country. We want every young child to 
grow up, and as they grow up, to become whatever their God-given 
talents can allow them to be. We don't want the brakes to exist for 
anybody. We want this to be an opportunity for everybody.
  I recall one day when my father came home for supper--and my father 
was a very successful man, very bright man, did very well in his life, 
but he only went through sixth grade in school because his mother died 
during childbirth and my father spent most of his time trying to raise 
some money and work and try to help his brothers and sisters, who had 
been farmed out to uncles and aunts and so on. So my dad had only a 
sixth grade education.
  I recall him coming home one day, never having told our family, and 
announcing at the supper table that he had just passed the GED. He had 
gotten his high school degree. He was somewhere in his fifties. He had 
gotten his high school degree. I will never forget the look on his face 
when he told us: I am a high school graduate. Got my GED.
  We didn't even know he was doing it, but he did. It meant the world 
to him because he had never gotten the opportunity to go beyond the 
sixth grade. And it means the world to a lot of people, in my judgment, 
to find out: What are my talents? What capabilities do I have? What are 
my interests to better

[[Page 19964]]

myself? What kinds of things am I interested in, and where can I go to 
college? How can I finish school and then go to college and advance my 
opportunities?
  Well, that is what the legislation that is brought before us today 
offers us the opportunity to do, to advance those interests. We have 
done it in steps over many decades, and it is the difference, as the 
Senator from Wyoming said, it is the difference between this country 
and many others.
  There are many other countries where they separate these kids at an 
early age, and they say: Well, based on your track record, based on the 
way things look for you, you are going in this direction. You are not 
going to college. And based on the way things look, you are going here. 
They separate them and they channel kids. Not in this country. We want 
every single kid to have an opportunity to become whatever their God-
given talents allow them to become.
  So the issue is funding for many kids because many young people don't 
have the money to go to college unless they get some help--Pell grants, 
Stafford loans, direct loans, and other loans. So we have programs that 
we have put together that provide that kind of assistance through the 
student loan process, and this bill, the underlying bill, strengthens 
programs to prepare students for college, and it takes important steps 
to help kids get to college and then make both kids and colleges 
accountable.
  Now, we have rising costs, as everyone knows. Every single parent 
knows that the costs for a college education are increasing 
dramatically. With respect to lending money for students going to 
college, we have discovered recently that there are some abusive 
lending practices, and this bill takes some steps to address those 
abusive practices.
  Some student lenders have undertaken to secure spots on what are 
called ``preferred lender lists.'' Some colleges, many colleges, have 
preferred lender lists. They put out a list that says: Here are the 
lenders from which you can get a guaranteed loan. There is a lot of 
money in this process for the lenders, and that is why the lenders are 
so anxious to be on these lists.
  My preference would be that we eliminate the lists altogether--
eliminate the preferred lender lists--but I don't think that is 
possible to get through this Chamber at this point, so I am going to do 
it in another way. I am going to address this in another way with the 
amendment I have just offered.
  The HELP Committee has done an admirable job in digging into this, as 
well as have, for example, some officials, the attorney general of New 
York, and others. The HELP Committee has put together some information 
about colleges and some colleges' financial aid officers soliciting 
favors, gifts, and financial assistance from lenders in exchange for 
putting that lender on a preferred list. Here is something that came 
from the HELP Committee that I noticed when I was looking at this 
issue.
  A Bank of America employee noted in an e-mail that Larry Burt, former 
Director of the University of Texas Office of Student Financial Aid, 
had requirements to get on the UT-preferred lender list. Again, it is 
very important to get on these lists for these companies that want to 
have lending opportunities to students. So here is someone who ran the 
University of Texas Student Financial Aid Office. This is a quote.

       Happy hour with UT loan department staff, staff luncheons, 
     lunch and/or dinner with Larry Burt, parties for Larry's 
     family--birthdays, et cetera--invitations to golf 
     tournaments--expenses paid by lender--and free tickets to 
     sports events. Larry loves tequila and wine--since becoming 
     director at UT Austin, he has not had to buy any tequila or 
     wine--lenders provide this to him on a regular basis.

  This was an e-mail from a Bank of America employee from a HELP report 
on marketing practices in the lending program. Not all lenders went 
along with these inappropriate demands. The HELP Committee 
investigation said Citibank did not go along with them because they 
deemed those requests to be inappropriate. And the very next year, 
apparently, with respect to this campus and Mr. Burt, Citibank was 
dropped from the UT-preferred lender list.
  Student Loan Xpress, another major lender, paid $21,000-plus for the 
chief financial officer at Johns Hopkins University to attend an 
executive doctorate program at the University of Pennsylvania after the 
financial aid officer sent the following lender an e-mail. This is the 
e-mail that went around from the financial aid officer at Johns 
Hopkins.

       I have been accepted to a doctoral program at Penn that 
     begins in August. I am searching for \1/2\ tuition support--
     know of any good scholarship programs?? I already know where 
     to get loans--or, why don't you put me on retainer to 
     EdLending.

  This is an e-mail from Dr. Ellen Frishberg, former Johns Hopkins 
University financial aid director. Once again, I think this is 
important information discovered by the HELP Committee. They began to 
investigate these issues.
  An investigation by New York attorney general Andrew Cuomo uncovered 
a revenue-sharing agreement between Citibank and Syracuse University. 
Citibank was paying Syracuse \1/2\ percent of the interest earned on 
student loans steered to the bank--a deal worth about $100,000 a year 
to the school. According to Attorney General Cuomo's investigation, 
during the last academic year, 98 percent of Syracuse students who took 
out loans went through Citibank.
  Just an unusual occurrence? Doesn't sound like it to me. Many lenders 
have invited college financial aid officers to serve on advisory 
boards, flying them around the country and various parts of the world 
and on harbor cruises.
  Now, why do lenders go through all this trouble? Well, the stakes are 
high. The student loan business is an $85 billion industry. It has 
grown 27 percent since 2001, and the lenders listed on the college's 
preferred lender list typically receive up to 90 percent of the loans 
taken out by students attending that institution. Again, these are 
guaranteed loans--guaranteed by the Federal Government. Lenders fight 
to get to the top of a list--of a preferred lender list--at a college.
  According to one survey, the first lender on the preferred list gets 
as much as 75 percent of the loan value. So this is big money to 
private interests that want to get government-guaranteed loans, move 
them out to students, and make a lot of money off those loans.
  Now, I know that the managers of the bill share my concerns. Senators 
Enzi, along with Alexander, Allard, Burr, Hatch, Isakson, Murkowski, 
and Roberts introduced legislation to ban preferred lender lists 
altogether. And Senator Kennedy has worked tirelessly to uncover and 
document abusive practices. I, frankly, would like to ban preferred 
lender lists altogether. We don't need preferred lender lists by 
colleges in which they describe who gets on the list and who gets to 
the top of the list. I don't think we ought to be doing that. But it is 
quite clear we can't ban those lists at the present time, so I am 
offering a different amendment.
  The bill before us addresses some of these practices by prohibiting 
payments, gifts, and other inducements that lenders give to colleges 
and student aid officers. The bill also forces schools to explain the 
rationale for selecting preferred lenders, and I think these are 
important steps.
  I don't diminish these steps at all. I am concerned that lenders will 
still do whatever they can do to get on those lists and get to the top 
of those lists. There are substantial incentives for abuse, and there 
is no evidence--there is no evidence at all--that the lenders on the 
preferred list actually offer the best deal to the students.
  The PRESIDING OFFICER. The Senator's time in support of his amendment 
has expired.
  Mr. DORGAN. Mr. President, I ask unanimous consent for 5 additional 
minutes.
  The PRESIDING OFFICER. Is there objection?
  Hearing no objection, it is so ordered.
  Mr. DORGAN. As I was saying, there is no evidence that being on the 
list or

[[Page 19965]]

put on the list by the college offers the students the best financial 
arrangement, and with the cost of college increasing at twice the rate 
of inflation, I think we need to make sure that students have access to 
affordable loans.
  So I offer an amendment that does the following: It will create a 
clearinghouse of student loans, both Federal and private loans. That 
clearinghouse will put students in the driver's seat, allowing them to 
search for a loan that offers the best deal, the best financial 
arrangements for them, whether that be the loan that has the lowest 
rate or the loan with the best borrower's benefits. This gives the 
students the opportunity to shop in an informed way for the best 
situation for themselves.
  This type of clearinghouse will create more competition in the 
student loan industry. I can't imagine that many students would go to 
this clearinghouse and pick the loan with the highest interest rate. 
This will empower students. It is not a new concept. In fact, some 
schools, including the University of North Dakota in my home State, are 
already directing students to Web sites that allow the students to 
search through dozens of loan options by themselves to pick the best 
terms.
  But creating a clearinghouse is not enough. We need to make certain 
that students know that it exists. My amendment would require schools 
to include a disclosure statement on their preferred lending list that 
lets students know that they might find a better deal by visiting the 
clearinghouse themselves.
  My amendment won't cost taxpayers a dime. The clearinghouse would be 
fully paid for by nominal fees that lenders would be charged in order 
to be listed in the clearinghouse.
  Finally, my amendment would direct the Government Accountability 
Office to issue a report to Congress about whether students have been 
able to use the clearinghouse and are using the clearinghouse, and it 
will examine whether students who chose to use one of the school's 
preferred lenders could have gotten a better rate--better financial 
arrangements--by visiting the clearinghouse had they done so. It is my 
hope this report will inform our future efforts in this area. If it 
becomes clear that students can do much better by visiting the 
clearinghouse than by going to preferred lenders, I think we ought to 
take a hard look at whether the preferred lenders ought to exist at all 
and whether we ought not in the future to prohibit a preferred lender 
list and develop, instead, a comprehensive clearinghouse that allows 
students to find the best arrangements for themselves.
  I believe this amendment will make the student loan industry more 
transparent and more accountable to students and their families who 
already struggle often to pay for these college expenses. So I 
encourage my colleagues to support this amendment. I think it is a 
reasonable and measured approach to clean up some of the abusive 
practices and to empower students.
  Finally, again, I would have preferred to just end the preferred 
lending list, but that is not possible. So this is the step I think 
accomplishes some of the same goals by empowering students, and I hope 
the Senate will consider this favorably today.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from Wyoming.
  Mr. ENZI. Mr. President, I thank the Senator from North Dakota for 
offering this amendment. I think we will be able to take it on voice--I 
know we will be able to take it on a voice vote, and I appreciate what 
he has done to enhance what we have in the bill that deals with more 
transparency and better information for students and parents on their 
loans.
  We created a number of new programs and disclosure requirements that 
will better equip students to make informed choices about how to 
finance their postsecondary education, which is always desired and what 
we are always working toward, and we have to find some mechanism 
through which that can be done. So I appreciate the way in which the 
Senator from North Dakota has approached this.
  I appreciate, too, his information. I always learn a lot from 
listening to him, and the Claude Pepper pictures about the 1903 Wright 
flight and the 1969 Moon landing are particularly interesting. It does 
show how education is accelerating--learning how to do flight in 1903, 
landing on the Moon in 1969--but it was the Sputnik event I mentioned 
in 1957 that touched off a lot of that. So it was essentially 12 years 
of development that got us to the Moon.
  I also want to mention the Grameen Bank. The founder of the Grameen 
Bank got a Nobel Peace prize for the work he has been doing loaning 
money to poor people. And this is a whole different level of poor than 
we know about in the United States. His first loan was for 27 cents to 
a lady who was then able to go into a weaving business. But the point I 
want to make is that the reason a lot of people aren't able to get 
loans is because they do not have any collateral. Students fall into 
that category, unless their parents have money. The student doesn't 
have money, and the student doesn't have collateral.
  So what we have provided for in the United States, through the Higher 
Education Act, both the reconciliation and this act, is a mechanism for 
people who don't have collateral but just have that collateral of 
desire; that collateral of a work ethic to be able to get loans and 
grants to be able to go on to college.
  The poorer they are, the more grants they qualify for in different 
ways. But they can get loans based on their desire to go to college. 
This mechanism, this clearinghouse, will help people make better 
determinations on their loans.
  We also have a new mechanism which deals with the Parent PLUS loans, 
which are about 10 percent of the loans. That is going to be an auction 
process. We looked at some ways to be able to auction the rights to 
provide the loans in order to bring down the costs, particularly the 
Federal Government. What we decided on was taking this one category and 
trying it. To do the whole thing could disrupt the entire student loan 
process, so we are trying it through an auction process on the Parent 
PLUS loans. That will answer some of these questions, too, on 
certification and perhaps bring down some of the costs. But it will 
increase the ability of students to get loans.
  I thank the Senator from North Dakota for his effort. At the 
appropriate time, we will do a voice vote on that if that is agreeable?
  The PRESIDING OFFICER. The Senator from North Dakota.
  Mr. DORGAN. Mr. President, a voice vote will be fine. I don't know if 
we are able to clear it now. I think it is cleared on our side. If it 
were cleared on your side, I think perhaps we could proceed to have it 
considered.
  Let me make a point. The Senator mentioned the microcredit issue. I 
have been in various parts of the world where they are using 
microcredit. In many ways, it is the same thing as microcredit in a 
different way--people with no collateral to be able to have some 
funding to advance themselves. The microcredit approach has been 
unbelievably successful, giving poor people the opportunity to buy 
needles for crocheting and bicycles for delivery services in various 
parts of the world. It was interesting the Senator referred to that.
  This approach allows a student who has no collateral of any type--all 
they have is promise, they have the promise of their capability to do 
better in life if they go to college--it allows them to get a loan to 
advance their interests. I think it is exactly the right thing.
  If we are able to consider that amendment now, I think it would be 
appropriate.
  Mr. ENZI. The amendment is cleared on both sides. Would it be 
appropriate to finish it now?
  The PRESIDING OFFICER. If there is no further debate, the question is 
on agreeing to the amendment.
  The amendment (No. 2366) was agreed to.
  The PRESIDING OFFICER. The Senator from South Carolina is recognized.


                           Amendment No. 2367

  Mr. DeMINT. I send an amendment to the desk and ask for its immediate 
consideration.
  The PRESIDING OFFICER. The clerk will report.

[[Page 19966]]

  The bill read as follows:

       The Senator from South Carolina [Mr. DeMint] proposes an 
     amendment numbered 2367.

  Mr. DeMINT. I ask unanimous consent that the reading of the amendment 
be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

(Purpose: To have the Government Accountability Office conduct a study 
     regarding the employment of postsecondary education graduates)

       At the end of title I, add the following:

     SEC. 114. EMPLOYMENT OF POSTSECONDARY EDUCATION GRADUATES.

       (a) Study, Assessments, and Recommendations.--The 
     Comptroller General of the United States shall--
       (1) conduct a study of--
       (A) the information that States currently have on the 
     employment of students who have completed postsecondary 
     education programs;
       (B) the feasibility of collecting information on students 
     who complete all types of postsecondary education programs 
     (including 2- and 4-year degree, certificate, and 
     professional and graduate programs) at all types of 
     institutions (including public, private nonprofit, and for-
     profit schools), regarding--
       (i) employment, including--

       (I) the type of job obtained not later than 6 months after 
     the completion of the degree, certificate, or program;
       (II) whether such job was related to the course of study;
       (III) the starting salary for such job; and
       (IV) the student's satisfaction with the student's 
     preparation for such job and guidance provided with respect 
     to securing the job; and

       (ii) for recipients of Federal student aid, the type of 
     assistance received, so that the information can be used to 
     evaluate various education programs;
       (C) the evaluation systems used by other industries to 
     identify successful programs and challenges, set priorities, 
     monitor performance, and make improvements;
       (D) the best means of collecting information from or 
     regarding recent postsecondary graduates, including--
       (i) whether a national website would be the most effective 
     way to collect information;
       (ii) whether postsecondary graduates could be encouraged to 
     submit voluntary information by allowing a graduate to access 
     aggregated information about other graduates (such as 
     graduates from the graduate's school, with the graduate's 
     degree, or in the graduate's area) if the graduate completes 
     an online questionnaire;
       (iii) whether employers could be encouraged to submit 
     information by allowing an employer to access aggregated 
     information about graduates (such as institutions of higher 
     education attended, degrees, or starting pay) if the employer 
     completes an online questionnaire to evaluate the employer's 
     satisfaction with the graduates the employer hires; and
       (iv) whether postsecondary institutions that receive 
     Federal funds or whose students have received Federal student 
     financial aid could be required to submit aggregated 
     information about the graduates of the institutions; and
       (E) the best means of displaying employment information; 
     and
       (2) provide assessments and recommendations regarding--
       (A) whether successful State cooperative relationships 
     between higher education system offices and State agencies 
     responsible for employment statistics can be encouraged and 
     replicated in other States;
       (B) whether there is value in collecting additional 
     information from or about the employment experience of 
     individuals who have recently completed a postsecondary 
     educational program;
       (C) what are the most promising ways of obtaining and 
     displaying or disseminating such information;
       (D) if a website is used for such information, whether the 
     website should be run by a governmental agency or contracted 
     out to an independent education or employment organization;
       (E) whether a voluntary information system would work, both 
     from the graduates' and employers' perspectives;
       (F) the value of such information to future students, 
     institutions, accrediting agencies or associations, 
     policymakers, and employers, including how the information 
     would be used and the practical applications of the 
     information;
       (G) whether the request for such information is duplicative 
     of information that is already being collected; and
       (H) whether the National Postsecondary Student Aid Survey 
     conducted by the National Center for Education Statistics 
     could be amended to collect such information.
       (b) Reports.--
       (1) Preliminary report.--Not later than 1 year after the 
     date of enactment of this Act, the Comptroller General shall 
     submit to Congress a preliminary report regarding the study, 
     assessments, and recommendations described in subsection (a).
       (2) Final report.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a final report regarding such study, assessments, 
     and recommendations.

  Mr. DeMINT. Mr. President, I am offering a very simple amendment 
today which I hope will get overwhelming bipartisan support. My 
amendment simply instructs the Government Accountability Office to 
complete a study regarding the employment of postsecondary education 
graduates.
  As my colleagues know, we live in a global economy that is creating 
intense competitive pressure on our workforce. It is more important 
than ever that our Nation's students, employers, and policymakers have 
access to good information about the effectiveness of our higher 
education system as it relates to employment and job placement.
  One of my favorite books, one I know many of my colleagues have read, 
is ``The World Is Flat'' by Thomas Friedman. According to Friedman, the 
convergence of advanced technology, the removal of economic and 
political obstructions, and the rapid introduction of millions of young 
professionals into the global economy have dramatically flattened the 
economic playing field. Friedman believes these changes are creating 
opportunities for people to tap their full potential, boost their 
prosperity, and live out their dreams. He believes that Americans with 
the knowledge, skills, and adaptability to compete in this newly 
flattened world can look forward to a bright future, while those 
without these skills will be left behind.
  If our higher education system is going to equip our students with 
the skills they need to compete, we need to have good information on 
graduate job performance so other students can pick the best schools 
and the most promising degrees.
  My amendment would instruct the GAO to study the feasibility of 
collecting information on the employment of students who complete a 
postsecondary education program. It would also instruct the GAO to 
provide Congress with recommendations on several important questions, 
including whether the current State programs that bring education and 
employment functions together can be replicated in other States; 
whether there is a value to collecting additional information about the 
employment of postsecondary graduates; the most promising ways of 
obtaining and disseminating this information; if a Web site is used, 
whether the Web site should be run by a Government agency or contracted 
out to an independent organization; whether a voluntary information 
system would work, both from the graduates' and employers' perspective; 
how the information could be used in practical ways; whether the 
requests for such information are duplicative of information already 
being collected or whether the National Postsecondary Student Aid 
Survey could be amended to collect such information. These are all 
important issues we must consider as we seek to expand information on 
the employment experiences of our Nation's college graduates.
  Before I conclude, I wish to explain how powerful this information 
could be in making our Nation more competitive in the global economy. 
If students could see how graduates from specific schools and with 
specific degrees have performed in the workplace, they could make 
better choices of alternative colleges and universities. If employers 
could see how graduates of specific schools and with specific degrees 
performed, they could make better hiring decisions. If colleges and 
universities could see exactly how they are performing in equipping 
students for the workplace, they could make adjustments to better 
compete with other higher education institutions. Finally, if lawmakers 
could see exactly how our education system is performing, it would help 
us all make better policy decisions in this important area.
  I thank the Senator from Wyoming, Mr. Enzi, for his interest in this 
issue and for the assistance he and his staff have provided me. I look 
forward to working with him and the Senator from Massachusetts to find 
ways to increase the availability of information

[[Page 19967]]

we have that connects higher education and employment.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Wyoming is recognized.
  Mr. ENZI. Mr. President, I thank the Senator for his good work on 
this amendment.
  The GAO study of the feasibility of collecting employment information 
on college graduates can help us find out how effective the program is 
before we have another reauthorization. Reliable information on student 
success, particularly employment success--that is our best measure--is 
very important to the future of higher education. The postsecondary 
education system needs facts at the State and institutional levels to 
identify successes and challenges, and consumers need the information 
to make informed decisions about education and training programs. Some 
States have pretty strong relationships between higher education and 
State agencies to get those employment statistics, but it is not done 
nationally. I think this would be a great step to providing that 
information and helping us to see how well we are doing, as well as the 
students.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
  Mr. KENNEDY. Mr. President, I thank the Senator for what I think is 
an excellent suggestion. It is an excellent idea. Some years ago, when 
we had the consolidation of our work-training program, we had 16 work-
training programs in 6 different agencies. Under the Kassebaum-Kennedy 
program, we tried to consolidate those. In those programs, we tried to 
do an assessment of training programs so someone coming will have the 
information that will be valuable to them--if they took X program for 8 
weeks, what their possibilities of getting placed were and what the 
possibilities would be for their income and how that might grow over a 
period of time. That would give the various students, at that time, the 
information to know, with what options, what the future was going to 
be.
  It also is helpful to us on our committee to know in what areas 
individuals are being trained. We have the responsibility in our 
committee to review where the vacancies are in our job markets and how 
we are going to deal with those. The amendment of the Senator is going 
to take this to another level in terms of the postgraduate education.
  I think we will have a chance, when this is achieved, to evaluate 
what our national needs are as a country and as an economy and whether 
we want to incentivize them. We can have that as a matter of public 
discussion and debate, as a Congress, in committees, so the American 
people understand what is going on in terms of graduate students. It 
will be enormously valuable and helpful.
  We always have a debate and discussion about our doctors: Do we have 
too many specialists in some areas and don't have enough general 
practitioners in others? What have been the defining aspects that get 
them to go into those areas? That is a constant issue our committee is 
dealing with at any particular time in the reauthorization.
  I think the amendment of the Senator will have the GAO come back and 
report. We look forward to working with the Senator when that comes 
back to try to get us greater information. It is a very solid amendment 
and a very useful one. I certainly recommend we accept it, for the 
reasons I have outlined briefly and for the reasons the Senator has 
explained.
  If the Senator is ready for a vote on that?
  Mr. DeMINT. Yes. A voice vote will be fine.
  The PRESIDING OFFICER. If there is no further debate, the question is 
on agreeing to the amendment.
  The amendment (No. 2367) was agreed to.
  Mr. KENNEDY. Mr. President, I move to reconsider the vote.
  Mr. ENZI. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. KENNEDY. Mr. President, we thank the Senator. We have made good 
progress this morning on two very useful and important amendments. As 
we pointed out during the discussion and debate at the end of last 
week, we are in an extremely fortunate position. We thank the 
leadership, and I thank Senator Enzi for his persistence, insisting 
that we deal with the authorization at a time when we are going to deal 
with the student assistance program. They should be considered 
together.
  We are grateful to the leadership for giving us the opportunity today 
to have a good chance to consider some ideas--as we have earlier this 
morning--some good ideas on the higher education legislation. This 
legislation is long overdue, and it is appropriate that we address it. 
We thank all of our colleagues for their cooperation.
  Hopefully, we will have a conclusion of this legislation after we 
have the consideration of some amendments. I have gone through a number 
of amendments. They are very solid and helpful and useful to the 
purpose and thrust of this legislation. We will have a chance to 
continue the good progress we have made earlier.
  I did wish to say a word generally about the legislation and 
highlight some of the provisions. I start off by again thanking my 
friend and colleague from Wyoming for his very strong work in this 
area. As I mentioned last week, our committee basically spent a great 
deal of time on this reauthorization. The legislation we have here 
today--with the exception, probably, of the provisions we have added on 
the student loans and perhaps one or two other important issues--is 
very much the legislation that would have come through our committee 
under his leadership.
  We have worked in a very important tradition and we want to try to 
maintain that tradition of strong bipartisanship. We have tried to keep 
this free from some of the other kinds of issues people feel strongly 
about here on the floor of the Senate because I think both of us 
understand that the education of the young people of this country is 
such an overwhelming issue for so many families that we want to try to 
meet our responsibilities to them and do it in a timely and thoughtful 
way.
  That has been the tradition, certainly marks the tradition of this 
particular reauthorization legislation. This is a place, I say, to join 
with members of our committee. Again, we have--I think the Senator from 
Wyoming would agree--a committee that spends a great deal of time on 
education issues. Whenever we have a markup, we have a very well-
informed discussion and debate.
  There has been an enormous accumulation of knowledge--and always of 
concern--by the members of our committee for these higher education 
bills; people who have spent a good deal of time on the education 
issue, Republicans and Democrats alike. We have wide diversity of our 
committee, urban areas, rural areas, and we have tried to respond to 
those kinds of needs. But this reauthorization is extremely important.
  Leading to the creation of the Higher Education Act back in 1965, 
President Kennedy said:

       Our progress as a Nation can be no swifter than our 
     progress in education, our requirements for world leadership, 
     our hopes for economic growth, and the demands of citizenship 
     itself in an era such as this all require the maximum 
     development of every young American's capacity. The human 
     mind is our fundamental resource.

  Those words rang true then, and they ring true today, as our country 
is once again in a time of war and conflict and faces great economic 
challenges. Equal access to higher education touches every aspect of 
American life. In order to compete effectively in the global economy 
and ensure a well-qualified Armed Forces, we need to equip all our 
citizens with the sound education from prekindergarten to college.
  Each year, 400,000 students do not go on to a 4-year college simply 
because they cannot afford to do so.
  Equally devastating--this is the 400,000--it shows that some 400,000 
talented students, these are qualified students, students that 
effectively have the qualifications to gain entrance into institutions 
of higher learning, by and

[[Page 19968]]

large; it is because of the lack of financial help and assistance that 
they do not attend a college.
  As we have seen during the debate and discussion at the end of last 
week, we need to make a very strong downpayment to provide help and 
assistance to students and graduates, such as through loan forgiveness, 
so that if they go into public service, which so many of them want to, 
we provide a forgiveness program for them that will make a large 
difference.
  As I mentioned last week, a key element that is going to help those 
400,000 is the work that has been done by the chairman and Senator Reed 
to make the FAFSA application a good deal simpler. As we have time 
through the afternoon, if others may wish to address the Senate, I will 
spend a little time going through the contrast between the two, and you 
will see the dramatic difference in the change we have had.
  Secondly, our second chart shows the devastating, equally 
devastating, fact that 47 percent of low-income eight graders will be 
academically--only 47 percent--will be academically prepared for 
college at the time of high school graduation, compared to 86 percent 
of their higher income peers. This is, again, an issue we talked about 
briefly last week, the growing apart of America.
  Education is the key. We do not want to have an education system that 
is going to help America grow apart. We have made every effort in this 
legislation to address that broader kind of issue. We are a better 
nation than that. We are a nation that believes in promise and 
opportunity for all our citizens.
  This bill expired in 2003. It was last updated in 1998. We cannot 
afford to wait any longer to reaffirm our commitment to higher 
education in this country and create a framework so our students are 
prepared to meet the challenges of this new economy.
  I am immensely pleased, and I know our committee members are, that we 
were able to swiftly move to this bill after the passage of the Higher 
Education Access Act last Thursday. Together, they make up the 
comprehensive higher education package.
  Again, I thank my friend and colleague, Senator Enzi, for the strong 
support in both of these parts of our education program and for 
considering them in tandem.
  The bill we passed last week includes several critical features, 
provisions to help make college affordable. We mentioned those during 
the debate. But it is important again to recognize the need-based grant 
aid; a significant increase in the maximum Pell grant; the repayment 
provisions that cap loan payments at 15 percent of monthly 
discretionary income; the loan forgiveness if individuals go into 
public service jobs; the protection for working students so those who 
are working, trying to put themselves through school, are not going to 
earn so much it will make them ineligible for student assistance 
programs; and the other protections we have provided for, such as those 
on active duty, which are Senator Murray's provisions.
  There is no doubt the student aid in the Access Act is the single 
most important thing we can do to increase access for college-ready, 
low-income students. But it is also our responsibility to ensure the 
multibillion dollar investment of taxpayers we make to student aid is 
delivered in the most effective and efficient way possible.
  This authorization bill will take steps to ensure the greatest return 
on this investment by addressing rising college costs, reforming the 
student loan system so it works for students not banks, simplifying the 
Federal aid application process, strengthening the college preparation 
programs such as GEAR UP and TRIO and promoting high-quality and 
effective teacher preparation programs.
  As we provide more aid to students, this bill recognizes that 
colleges need to do their part to keep college costs down. Costs for 
college have more than tripled in the last twenty years, as this chart 
shows. Every middle-income family, who has a child in school or college 
knows this better than the charts can portray.
  The costs have effectively tripled over the last 20 years. So the 
higher education amendments for 2007 will hold colleges accountable for 
skyrocketing college costs by creating nationwide watch lists of 
colleges whose costs are increasing at a rate greater than their peers 
and by encouraging the Department of Education and colleges to publish 
more consumer-friendly information about college costs and programs.
  To ensure this aid is directed to students, its intended 
beneficiaries, we must keep them informed about choices and hold 
colleges and lenders accountable for getting the students the best loan 
deal possible.
  The investigation by New York Attorney General Cuomo and other States 
and our committee have found many lenders are entering into sweetheart 
deals with colleges. Some lenders offer gifts to college employees in 
order to secure their student loan business. We have documented how 
lenders who participated in the Federal student loan program offer 
educational conferences, luxury hotels, free entertainment, free 
tickets to sporting events to college officials in order to entice 
those officials to recommend the lenders to their students.
  Our legislation makes these practices illegal and protects students 
by ensuring that when a college recommends a lender, it is based on the 
best interests of students and nothing else. To ensure that students 
have access to the Federal financial aid they are eligible for, we 
simplify the financial aid process for all students by reforming the 
application for Federal student aid.
  As you can see, the form is currently 10 pages long and includes more 
than 100 questions. This chart shows--the people who are watching 
cannot read the individual lines--but this is 10 pages long. Even up 
close it is difficult to read the questions. But it is enough to 
intimidate and inhibit many of the young people from moving ahead with 
this program.
  As I mentioned, thanks to Senator Enzi and Reed, this bill 
dramatically simplifies the FAFSA and examines how we can streamline it 
further in the future. Our bill will make the financial aid process 
more student friendly by immediately creating a 2-page form, what we 
call EZ FAFSA, for low-income students and phasing out the current long 
paper process. It will also create a pilot program to let students know 
how they can access Federal aid for college earlier by allowing 
students to receive an aid determination or estimate in junior high 
school so they can gain the information about whether they have a real 
opportunity to go on, to continue on to college, and get the 
information in an easy to understand and timely way. That is the 
purpose of this particular effort.
  Ensuring access to adequate grant aid is one component of solving the 
college access crisis. We must also ensure more students are graduating 
from high school ready to succeed in college. In 2001, colleges 
required a third of all freshmen to take remedial courses in reading, 
writing or math.
  Because so many high school students are not learning the basic 
skills to succeed in college or work, the Nation loses more than $3.7 
billion a year. This figure includes the $1.4 billion to provide the 
remedial education of students who recently completed high school.
  In addition, this figure factors in the almost $2.3 billion the 
economy loses because remedial students are more likely to drop out of 
college without a degree, therefore reducing their earning potential.
  This is extremely important. That brings us to the work our committee 
is attempting on the No Child Left Behind Act. The target of that is 
the lower grades and high school, but we are interested in trying to 
find a seamless web, so that we're coordinating with Head Start, with 
kindergarten, coordinating with No Child Left Behind, coordinating with 
the colleges and universities.
  We understand this ought to be a seamless web, so to speak. It is 
not, at the present time, and we are committed to trying to do it. If 
we have these kinds of gaps in the learning process for our students, 
we are certainly not serving them well.

[[Page 19969]]

  This bill also includes provisions championed by Senator Brown to 
maintain the strength of the TRIO and GEAR UP programs which provide 
underprivileged students with the support they need to go to college 
and graduate from college.
  The Higher Education Act of 1965 established the National Teacher 
Corps, a federally funded Great Society program to develop our Nation's 
teaching force. This bill continues that tradition by promoting high-
quality and effective preparation programs for new and prospective 
teachers. We are very committed to retaining high-quality teachers in 
high-need schools. This was of particular interest to Senator Nelson, 
Gaylord Nelson, who is deceased. He was very much involved in that 
program and it was very successful.
  Finally, this bill will create a new student safety grant program to 
help colleges and universities improve their campus safety and 
emergency response systems. As the nightmare at Virginia Tech made us 
all too aware, tragedy can strike anywhere, include college campuses. 
We have important provisions in this area.
  This legislation received unanimous bipartisan support in committee. 
I hope we will see that demonstrated today. One final point, when we 
are talking about the cost of colleges, we also encourage that states 
ensure students and families know what they're doing to support higher 
education. In a number of States, for example, my State of 
Massachusetts, in recent years, prior to the election of Deval Patrick, 
under a previous Governor, we saw substantial reductions of State help 
to colleges, and so the colleges have no alternative but to raise the 
fees on young people.
  They didn't say these were increased taxes, but effectively they were 
for these young families. We had a dramatic reduction in terms of state 
appropriations for higher education recently. It is important for the 
American people to understand, are the States helping? Are they doing 
their fair share or is the fact that we are seeing an increase in 
particular States the result of State action? We want to make sure the 
public understands it and that we understand it as well. We are serious 
about trying to ensure that college education is affordable and 
accessible to everyone. This is not the final answer. We have a lot 
more work to do. But I would hope the students and their families and 
the education community would feel this is a very important and 
constructive step. It is reflected in a very important bipartisan 
effort on our part to make sure we are going to get help to the young 
people of this country so our Nation can be strong economically and can 
have the young people who will make sure that our great institutions 
are going to function to protect our values and our rights.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time? If no one yields time, time 
will be charged equally.
  Mr. KENNEDY. I suggest the absence of a quorum and ask unanimous 
consent that time under the quorum calls during consideration of S. 
1642 be charged equally to both sides.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. KENNEDY. I ask unanimous consent that the order for the quorum 
call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 2368

  Mr. KENNEDY. Mr. President, I send to the desk an amendment by the 
Senator from California, Mrs. Boxer. I welcome the opportunity to offer 
it on her behalf.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Massachusetts [Mr. Kennedy], for Mrs. 
     Boxer, proposes an amendment numbered 2368.

  Mr. KENNEDY. I ask unanimous consent that reading of the amendment be 
dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

  (Purpose: To amend provisions relating to the upward bound program 
        under section 402C of the Higher Education Act of 1965)

       In section 403(c) of the Higher Education Amendments of 
     2007, add at the end the following:
       (7) by adding at the end the following:
       ``(h) Additional Funds.--
       ``(1) Authorization.--There are authorized to be 
     appropriated for the upward bound program under this chapter, 
     in addition to any amounts appropriated under section 
     402A(g), $57,000,000 for each of the fiscal years 2008 
     through 2011 for the Secretary 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 under this chapter.
       ``(2) Use of funds.--
       ``(A) In general.--The amounts made available by paragraph 
     (1) for a fiscal year shall be available to provide 
     assistance to applicants for an upward bound project under 
     this chapter for such fiscal year that--
       ``(i) did not apply for assistance, or applied but did not 
     receive assistance, under this section in fiscal year 2007; 
     and
       ``(ii) receive a grant score above 70 on the applicant's 
     application.
       ``(B) 4-year grants.--The assistance described in 
     subparagraph (A) shall be made available in the form of 4-
     year grants.''.

  Mr. KENNEDY. I yield myself the time on the amendment itself.
  The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
  Mr. KENNEDY. The Boxer amendment is to provide additional funding--
$57 million for Upward Bound Programs. Upward Bound Programs are 
special programs, formed by colleges, to help students who come from 
lower income families and who are first-generation college students, 
and who have capacity and capability to continue on to college. It has 
been enormously successful. What has happened is there are applications 
submitted by Upward Bound Programs in order to get a grant. Depending 
on a variety of different factors, those grants are either approved or 
not. They are scored and then either approved or not. The cutoff time 
at the present time is 92 percent.
  The Boxer amendment, with an increased authorization which amounts to 
approximately $57 million, will amend the Upward Bound scoring to say 
that any quality program above 70 on the most recent grant cycle would 
be eligible to receive funding.
  This is a valuable and worthwhile effort. I have a chart which shows 
what the results of the Upward Bound Program have been. Nearly 90 
percent of Upward Bound students graduate from high school compared to 
only 68 percent of all low-income 18- to 24-year-olds. We have gone 
through other charts that showed, even if they graduated, those who 
will be qualified for college. Nearly 70 percent of Upward Bound 
students attend college compared to the lower rate of 54 percent for 
all low-income students. Fifty percent of Upward Bound students attend 
a 4-year college compared to other low-income students. Upward Bound 
students are four times more likely to earn an undergraduate degree 
than students from similar backgrounds. This shows what all of us 
believe, and that is, all students can learn. They may learn at a 
somewhat different pace or a different time, but they can learn.
  What we have seen is for a number of different reasons, we find 
particularly that those who are from the lower income families are 
either discouraged or, because of the costs, because of the 
application, the system is skewed against them. We are seeing that 
education, rather than being a factor which is uniting our country, is 
adding to the disparity.
  One of the most effective programs, of course, is the TRIO Program. 
Within the TRIO Program is the Upward Bound Program. So Members are 
very familiar with this program. We all have programs in our own 
States. I have many in my State--over 50 TRIO programs in 
Massachusetts. I have the list here, and there are programs in just 
about every single State. These programs are out there and are working 
and providing important opportunities for students.
  So this is just an authorization, but it is an important one. It is 
targeting the group of students who need that extra help and 
assistance. It is remarkable that the schools and colleges are so 
involved in trying to help secondary

[[Page 19970]]

school students. We have the GEAR UP program, which our good friend, 
Chaka Fattah from Philadelphia, was the architect of, working through 
universities. I know in the city of Boston many of the high schools are 
tied into the colleges that work with these students. It is a wonderful 
relationship. It is the way it should be.
  These kinds of outreach programs try to help and assist many of those 
students who are the neediest and are facing a wide variety of 
different challenges, recognizing they, too, have dreams, hopes, and 
interests in terms of furthering their education. This is an extremely 
modest program, but one that is enormously valuable and has 
demonstrated, time and again, its success.
  So, Mr. President, that is the Boxer amendment, and I do not believe 
there is objection to it.
  The PRESIDING OFFICER. The Senator from Wyoming.
  Mr. ENZI. Mr. President, I want to voice my appreciation for the 
presentation that was just made to give people a fuller understanding 
of what this amendment does. I will make a couple of additional 
comments on it.
  One of the problems that brings this particular amendment forward is 
the appropriators did not appropriate the money that would have 
provided for all of the people who got a score of 70 or above to 
receive a grant in fiscal year 2007. Perhaps that has to do with a lack 
of authorization or too low of an authorization. So this one is an 
authorization.
  It is an interesting process we have around here. We have the budget 
process, which is where the President sends us a bunch of 
recommendations as to how he thinks we ought to spend money, and then 
we revise it sort of the way we want to spend money, except the real 
revision is only in the caps. That is what a budget is, it is how much 
total money we get to spend. Then we have an authorization process, 
where the committees are involved in the actual legislation for that 
area.
  In this case, higher education comes under Health, Education, Labor, 
and Pensions, the HELP Committee. So we get to authorize, which says 
what we think ought to happen, kind of in a maximum sort of way. So 
this amendment does authorize additional funds that would meet the 
criteria.
  I do have some small concern. It says this would allow for those to 
reapply who did not apply for assistance. This is a competitive grant 
situation. For whatever reason, they might not have applied. If they 
did not apply, for a competitive grant, you simply do not get it. But I 
suspect that is something I will either better understand or we can 
make a correction on at a later time. So I do not have any problem with 
taking this amendment.
  I do want to emphasize that anybody who wants higher education ought 
to look at the programs that are available out there. One of the things 
we are trying to do is get more information to more people about what 
is available. We originally called it the TRIO Program because there 
were three programs that would help students--some in minorities, some 
in lower income situations. But we had three programs. Now we are at 
eight programs, and we keep devising ways so more kids can get more 
education.
  What we need, of course, is for the kids to take advantage of the 
programs that are out there. I certainly would not want to stifle a 
program by not authorizing this at this point in time. So I encourage 
us to accept this amendment by a voice vote.
  I yield the floor.
  The PRESIDING OFFICER. Is there further debate on the amendment?
  If not, the question is on agreeing to amendment No. 2368.
  The amendment (No. 2368) was agreed to.
  Mr. KENNEDY. Mr. President, I yield myself the remainder of the time 
on this amendment for use in the debate on the bill.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Ms. MURKOWSKI. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The Senator from Alaska is recognized.
  Ms. MURKOWSKI. Mr. President, we know a college degree and a highly 
skilled labor force are the keys to increasing earnings and to 
Americans' competitiveness around the world.
  When the Senate HELP Committee began work on the reauthorization of 
the Higher Education Act, my main priority at the time was to ensure 
that more students could access and afford college and job training.
  Taken as a package, S. 1762--the Higher Education Access Act that we 
passed early Friday morning--and S. 1642--the Higher Education 
Amendments Act--that we are debating today--truly accomplish these 
goals and more.
  Early Friday morning, the Senate increased the maximum Pell grant 
award to assist low-income students to go to college or to get job 
training. Then we added additional funding for the neediest of low-
income students.
  I am also very proud that we authorized and appropriated $226 million 
for the College Access Partnership Grant Program. This is a partnership 
between the Federal Government and the States to help more young 
Americans prepare for, apply to, and succeed in college.
  We also did good work in the bill in protecting borrower benefits 
that are provided by State agency and nonprofit lenders.
  In Alaska, we have a State agency lender that uses their special 
allowance payments, or their SAP payments, to reduce the loan interest 
rates to the lowest in the Nation. They provide outreach and college 
early awareness to middle and high school students. They provide need-
based grants and other very important benefits.
  Alaska's State agency, nonprofit lender, and others like it in States 
such as Wyoming, Tennessee, and North Carolina, are not plowing their 
SAP rate into their profit margin. I am gratified the Senate was able 
to recognize the good work the State of Alaska and many other States 
are doing.
  Also in the legislation, we ensured that young Americans will not be 
saddled with unmanageable amounts of debt after they graduate.
  It is these and other provisions in S. 1762 that go hand in hand with 
the bill we are debating today, and which I am hopeful we will see 
passage of by tonight.
  This bill, S. 1642--the Higher Education Amendments of 2007--includes 
many important and beneficial provisions that will ensure that 
students, parents, and American taxpayers get the fairest deal, the 
best information, and truly the biggest bang for their buck.
  This legislation makes the cost of college more transparent so 
parents and students can compare the costs of different colleges to 
determine which ones will most effectively and affordably meet their 
needs.
  It places prohibitions on unauthorized entities using students' loan 
and grant information for marketing purposes. It provides fair, 
sensible, and rigorous ethics reform for financial aid administrators 
and lenders to ensure that the students receive the information they 
need to make decisions that will benefit them and not benefit 
unscrupulous lenders or postsecondary institutions.
  Title II of the bill streamlines and strengthens Teacher Quality 
Enhancement grants to bring more accountability to university teacher 
training programs. It also directs the Secretary to further simplify 
the FAFSA the Free Application for Federal Student Aid. When we were 
talking on the floor last week about the FAFSA application, the Senator 
from Wyoming held up that eight-page application and demonstrated what 
it is the students are faced with when they take this on.
  I am particularly proud of one provision that I worked to include in 
S. 1642. This provision makes it easier for servicemembers--
particularly those in the lowest ranks--and their spouses to afford 
college.
  I was in my State at Fort Richardson last winter, and I was visiting 
with some of the wives of the servicemen deployed to Iraq and 
Afghanistan. I asked

[[Page 19971]]

them in this townhall meeting: What is it that I can do to help you as 
you wait for your loved one to return home? How can we make your lives 
better? We talked about quality-of-life initiatives. We talked about 
greater certainty with deployments. But one of the wives told me that 
during this time when her husband was deployed for 15 months, she was 
trying to take advantage of this time period to better herself by going 
on to college. She told me that one of the things keeping her from 
being able to afford to go to college was that the money the military 
pays to help offset a portion of their housing costs, which is counted 
toward their income, this allowance prevented her from being eligible 
for a Pell grant. Now, given the low rate of pay for many members of 
the military, particularly those in the lowest ranks, this is also a 
barrier for them in being able to take out student loans.
  I soon found out from the National Military Families Association that 
many military spouses are in this same position. So when I came back to 
the Capitol, I worked to include language in S. 1642 that would exclude 
the cost of the basic allowance for housing for servicemembers living 
off base, as well as the value of on-base housing, from being included 
in calculations for financial need.
  Excluding the basic allowance for housing--which, in the vast 
majority of cases, does not completely cover military families' housing 
costs--and the value of on-base housing will benefit the least well-
paid members of our military and their spouses. These are privates, 
they are seamen's apprentices, lance corporals, airmen, and corporals 
whose base pay is less than $35,000 a year. As those who are deployed 
and serving our country, we can help the spouses who perhaps are here 
and looking to better themselves during this period of time as they 
wait for their loved ones to return home. This is a true benefit for 
them.
  I could not be more proud to know that this strong woman whom I met 
last year and potentially thousands like her will have a better chance 
now of being able to attend college should we be successful in passing 
this legislation.
  Overall, I believe we did a fine job in making college and job 
training more accessible and more affordable. I would like to thank my 
colleagues, especially Senator Kennedy and Senator Enzi, for their 
generosity and their graciousness throughout this long process and 
their true dedication toward the goal of educating all of America's 
young people.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  Mr. KENNEDY. Mr. President, if the Senator from Virginia will 
withhold, I wanted to thank the good Senator from Alaska. She has been 
a very active member of our committee. Besides her earlier amendment 
that was on income-based assistance to the students, she had a very 
worthwhile amendment that is going to make a big difference in her 
State and in all of our States in terms of making greater availability 
of information and outreach to students who are qualified to go to the 
schools and colleges but otherwise would not be able to because of lack 
of information and support. That was a key element. Also, she has been 
very much involved in the grant program which is included in this for 
science and technology.
  She has been a very active member. We value very much her input and 
involvement in the legislation. We thank her for her comments.
  Mr. ENZI. Mr. President, I, too, would like to thank her for her 
comments and her tremendous participation on the committee, 
particularly with her rural approach to problem-solving, and that rural 
approach affects Wyoming equally--well, maybe not equally to Alaska 
because they have a lot more land with a few more people--but she has 
done a tremendous job in the committee.
  I yield up to 15 minutes to the Senator from Virginia for a 
presentation of his amendment.
  The PRESIDING OFFICER. The Senator from Virginia is recognized.


                           Amendment No. 2371

  Mr. WARNER. Mr. President, I thank the Presiding Officer, and I wish 
to particularly thank the managers of this bill. In my 29 years here in 
the Senate, I have stood on the floor many times with Senator Kennedy, 
but at this time, we are absolutely joined in this magnificent piece of 
legislation which I submit on behalf of Senator Kerry and Senator Webb 
and many other Senators who have worked on it through the years.
  To my good friend, Senator Enzi, I was once on his committee, the 
Senate Committee on Health, Education, Labor and Pensions (HELP), but 
as we move around here, I just couldn't get on the HELP Committee this 
time around.
  I commend Senator Enzi and Senator Kennedy and their staffs for their 
very hard work in preparation of this amendment, and my staff, senior 
member Angela Stewart. Over the weekend, I was traveling, as many of 
our colleagues were in our respective States, and she and I must have 
had at least six to eight telephone calls over the period of 2 days, 
just working out refinements and protocol with regard to this 
amendment. I think it is a representation of the Senate. No matter 
whether we are here on the floor or wherever we may be, we constantly 
are working on the legislative proposals that many of us have from time 
to time.
  Again, I wish to draw attention to the title of this particular 
amendment. First, I send it to the desk and ask for its immediate 
consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Virginia [Mr. Warner], for himself, Mr. 
     Kerry, and Mr. Webb, proposes an amendment numbered 2371.

  Mr. WARNER. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

   (Purpose: To establish a digital and wireless network technology 
                    program, and for other purposes)

       At the end of title VIII of the bill, insert the following:

     SEC. 802. MINORITY SERVING INSTITUTIONS FOR ADVANCED 
                   TECHNOLOGY AND EDUCATION.

       At the end of title VIII (as added by section 801), add the 
     following:

  ``PART N--MINORITY SERVING INSTITUTIONS FOR ADVANCED TECHNOLOGY AND 
                               EDUCATION

     ``SEC. 876. PURPOSES.

       ``The purposes of the program under this part are to--
       ``(1) strengthen the ability of eligible institutions to 
     provide capacity for instruction in digital and wireless 
     network technologies; and
       ``(2) strengthen the national digital and wireless 
     infrastructure by increasing national investment in 
     telecommunications and technology infrastructure at eligible 
     institutions.

     ``SEC. 877. DEFINITION OF ELIGIBLE INSTITUTION.

       ``In this part, the term `eligible institution' means an 
     institution that is--
       ``(1) a historically Black college or university that is a 
     part B institution, as defined in section 322;
       ``(2) a Hispanic-serving institution, as defined in section 
     502(a);
       ``(3) a Tribal College or University, as defined in section 
     316(b);
       ``(4) an Alaska Native-serving institution, as defined in 
     section 317(b);
       ``(5) a Native Hawaiian-serving institution, as defined in 
     section 317(b); or
       ``(6) an institution determined by the Secretary to have 
     enrolled a substantial number of minority, low-income 
     students during the previous academic year who received a 
     Federal Pell Grant for that year.

     ``SEC. 878. MINORITY SERVING INSTITUTIONS FOR ADVANCED 
                   TECHNOLOGY AND EDUCATION.

       ``(a) Grants Authorized.--
       ``(1) In general.--The Secretary is authorized to award 
     grants, on a competitive basis, to eligible institutions to 
     enable the eligible institutions to carry out the activities 
     described in subsection (d).
       ``(2) Grant period.--The Secretary may award a grant to an 
     eligible institution under this part for a period of not more 
     than 5 years.
       ``(b) Application and Review Procedure.--
       ``(1) In general.--To be eligible to receive a grant under 
     this part, an eligible institution shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may 
     reasonably require. The application shall include--

[[Page 19972]]

       ``(A) a program of activities for carrying out 1 or more of 
     the purposes described in section 876; and
       ``(B) such other policies, procedures, and assurances as 
     the Secretary may require by regulation.
       ``(2) Regulations.--After consultation with appropriate 
     individuals with expertise in technology and education, the 
     Secretary shall establish a procedure by which to accept and 
     review such applications and publish an announcement of such 
     procedure, including a statement regarding the availability 
     of funds, in the Federal Register.
       ``(3) Application review criteria.--The application review 
     criteria used by the Secretary for grants under this part 
     shall include consideration of--
       ``(A) demonstrated need for assistance under this part; and
       ``(B) diversity among the types of eligible institutions 
     receiving assistance under this part.
       ``(c) Matching Requirement.--
       ``(1) In general.--An eligible institution that receives a 
     grant under this part shall agree that, with respect to the 
     costs to be incurred by the institution in carrying out the 
     program for which the grant is awarded, such institution will 
     make available (directly or through donations from public or 
     private entities) non-Federal contributions in an amount 
     equal to 25 percent of the amount of the grant awarded by the 
     Secretary, or $500,000, whichever is the lesser amount.
       ``(2) Waiver.--The Secretary shall waive the matching 
     requirement for any eligible institution with no endowment, 
     or an endowment that has a current dollar value as of the 
     time of the application of less than $50,000,000.
       ``(d) Uses of Funds.--An eligible institution shall use a 
     grant awarded under this part--
       ``(1) to acquire equipment, instrumentation, networking 
     capability, hardware and software, digital network 
     technology, wireless technology, and infrastructure;
       ``(2) to develop and provide educational services, 
     including faculty development, related to science, 
     technology, engineering, and mathematics;
       ``(3) to provide teacher preparation and professional 
     development, library and media specialist training, and early 
     childhood educator and teacher aide certification or 
     licensure to individuals who seek to acquire or enhance 
     technology skills in order to use technology in the classroom 
     or instructional process to improve student achievement;
       ``(4) to form consortia or collaborative projects with a 
     State, State educational agency, local educational agency, 
     community-based organization, national nonprofit 
     organization, or business, including a minority business, to 
     provide education regarding technology in the classroom;
       ``(5) to provide professional development in science, 
     technology, engineering, or mathematics to administrators and 
     faculty of eligible institutions with institutional 
     responsibility for technology education;
       ``(6) to provide capacity-building technical assistance to 
     eligible institutions through remote technical support, 
     technical assistance workshops, distance learning, new 
     technologies, and other technological applications; and
       ``(7) to foster the use of information communications 
     technology to increase scientific, technological, 
     engineering, and mathematical instruction and research.
       ``(e) Data Collection.--An eligible institution that 
     receives a grant under this part shall provide the Secretary 
     with any relevant institutional statistical or demographic 
     data requested by the Secretary.
       ``(f) Information Dissemination.--The Secretary shall 
     convene an annual meeting of eligible institutions receiving 
     grants under this part for the purposes of--
       ``(1) fostering collaboration and capacity-building 
     activities among eligible institutions; and
       ``(2) disseminating information and ideas generated by such 
     meetings.
       ``(g) Limitation.--An eligible institution that receives a 
     grant under this part that exceeds $2,500,000 shall not be 
     eligible to receive another grant under this part until every 
     other eligible institution that has applied for a grant under 
     this part has received such a grant.

     ``SEC. 879. ANNUAL REPORT AND EVALUATION.

       ``(a) Annual Report Required From Recipients.--Each 
     eligible institution that receives a grant under this part 
     shall provide an annual report to the Secretary on the 
     eligible institution's use of the grant.
       ``(b) Evaluation by Secretary.--The Secretary shall--
       ``(1) review the reports provided under subsection (a) each 
     year; and
       ``(2) evaluate the program authorized under this part on 
     the basis of those reports every 2 years.
       ``(c) Contents of Evaluation.--The Secretary, in the 
     evaluation under subsection (b), shall--
       ``(1) describe the activities undertaken by the eligible 
     institutions that receive grants under this part; and
       ``(2) assess the short-range and long-range impact of 
     activities carried out under the grant on the students, 
     faculty, and staff of the institutions.
       ``(d) Report to Congress.--Not later than 3 years after the 
     date of enactment of the Higher Education Amendments of 2007, 
     the Secretary shall submit a report on the program supported 
     under this part to the authorizing committees that shall 
     include such recommendations, including recommendations 
     concerning the continuing need for Federal support of the 
     program, as may be appropriate.

     ``SEC. 880. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for fiscal year 2008 and 
     each of the 5 succeeding fiscal years.''.

  The PRESIDING OFFICER. The Senator from Virginia is recognized.
  Mr. WARNER. Mr. President, it is entitled, ``Minority Serving 
Institutions for Advanced Technology and Education,'' amendment to S. 
1642, The Higher Education Act Amendments of 2007.
  I remember in the 1980s, traveling to several of the historically--
and they referred to them as ``historically Black colleges'' in the 
Commonwealth of Virginia, I noticed the absence of so much 
infrastructure in these struggling institutions that other institutions 
often had in abundance. Having had an engineering background myself, at 
my old school, Washington Lee University, we had laboratories with an 
abundance of equipment and all types of high technology.
  I suppose at that time the thoughts in my mind led toward this day, 
and it has been a long climb up the mountain--not by just this Senator 
from Virginia but by many, many Senators. I remember Senator Cleland 
was very interested in this, former Senator Cleland, Max Cleland of 
Georgia, and my colleague and former Senator George Allen of Virginia. 
Fortunately, today, with the two managers of this bill, the chairman 
and ranking member of this important committee, the HELP Committee, and 
with the help of many others and the primary cosponsor, the 
distinguished Senator from Massachusetts, Mr. Kerry, and my colleague 
from my State, Senator Webb, we are here this afternoon to present this 
amendment.
  I first ask unanimous consent that those Senators who desire to put 
in statements regarding this amendment of course may do so and that 
they be colocated in the Record following the introduction of this 
amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. WARNER. Mr. President, it appears statistically that over 60 
percent of the jobs in America, all across our land, require not only a 
basic knowledge but really an advanced skill in what we refer to as 
``information technology.'' Jobs in this area, frankly, pay and command 
higher salaries. Today, as I said, many of the minority serving 
institutions--this covers a wide group of institutions which I will 
address later in my text, but the minority serving institutions simply 
lack the resources, the necessary capital, endowments, and all types of 
financing that go into these institutions to acquire the basic 
equipment, whether it is an actual computer itself, or the technology 
to hook it into systems, and they also need technology capabilities in 
their classrooms, dormitories and libraries. It is for that purpose we 
are asking the Senate today to support this bill to provide the sum of 
money for 5 consecutive years to form a competitive grant program so 
this wide range of institutions may compete for this pot of money and 
hopefully obtain it for their respective institutions.
  We need to bridge--and I use the term the ``digital divide'' to help 
students who want to develop the skills necessary to succeed in a 
technology-based economy so that they can compete in today's modern 
world and take these jobs, which, incidentally, are badly needed in the 
workforce, and therefore get salary and perhaps a step up on the ladder 
of development of their career. This is definitely a bipartisan 
amendment and, as I said with the deepest sense of humility, many, many 
Senators have worked toward this day.
  Specifically, the legislation will establish, as I said, a grant 
program for these institutions of higher learning to bring increased 
access to computers, technology, and the Internet to their student 
populations. Institutions can

[[Page 19973]]

use funds to acquire equipment, instrumentation, networking capability, 
hardware and software, digital network technology, wireless technology, 
and infrastructure to develop and provide these educational services. 
In addition, the grants can be used for such activities as campus 
wiring, equipment upgrades, and technology training. Finally, Minority 
Serving Institutions could use these funds to offer their students 
universal access to campus networks, thereby increasing connectivity 
and making infrastructure improvements.
  Moreover, much has been said in this education debate about the 
importance of math and science education. I remember well, I and other 
Senators 2 years ago were authors of the SMART grant program, which 
provides stipends to economically disadvantaged students in their third 
and fourth year of college or university training who elect to study 
critical majors in math, science, and engineering and key foreign 
languages. We must now begin to encourage and provide for those 
students who want to start earlier than their third and fourth year and 
begin to enter and study these critical fields, not only of math and 
science but of high tech.
  I point out, I remember very well when I came out of the Navy at the 
end of World War II, I had the GI bill, and I went to my university--a 
small one--and they had a very small engineering department at that 
time. The engineering department is now gone because it couldn't take 
the competition of larger schools. But I remember so well we would go 
into the laboratories in the afternoon and spend long hours. We didn't 
have any air-conditioning, so we opened the windows, obviously. You 
could hear the other students out on the playing fields enjoying all 
kinds of sports and other things while we were there laboring over the 
laboratory requirements. Then, at night, of course, we all had the 
obligatory homework. It seems to me that those of us who were in the 
high-tech and the math--I was a math major and physics major--we would 
spend endless, long hours on our homework.
  I bring that up not to in any way eulogize myself and my career but 
simply to say that those students who want to dedicate that extra time 
to study in the high-tech world--and it does require extra time, 
thereby giving up some of the pleasures in life--we ought to have the 
proper equipment available for all of them.
  The National Science Foundation reports that the percentage of 
bachelor's degrees in science and engineering across America has been 
declining. Many a time I and other Members of this body have pointed 
out how America is falling behind, particularly with reference to India 
and to China, as such a higher percentage of their university graduates 
are following the high-tech careers. So let's give a leg-up to those 
young people who want to devote that extra time, that extra motivation 
in their studies for these specialties in math, science, and 
technology.
  This amendment also addresses the shortage of qualified professionals 
that teach courses in these areas. You simply have to have not only the 
hardware within the institution but knowledgeable teachers and 
professors, and this amendment provides an inducement for their 
training.
  As I said, I am proud to say that my great State is home to six 
institutions that qualify for this grant program. Throughout the years 
that I have been in the Senate, they have proudly been referred to as 
Historically Black Colleges and Universities, known as the HBCUs: 
Norfolk State University, St. Paul's College, Virginia University of 
Lynchburg, Virginia Union University, Hampton University, and Virginia 
State University. Right now, at this point, I thank all of the faculty 
and presidents of those institutions and administrators who through 
these many years, year after year, have come into my office pleading 
for this modest program to help them put in the infrastructure and gain 
the teaching faculty to help the students who want to pursue these 
careers in science, math, and technology. Likewise, all across America, 
Minority Serving Institutions will qualify for this grant program. 
There are over 200 Hispanic-Serving Institutions, over 100 Historically 
Black Colleges outside of Virginia, and over 30 Tribal Colleges 
throughout the United States. In addition, Alaska Native-serving 
institutions and Native Hawaiian-serving institutions are also eligible 
for these grants.
  In the mid-1980s, on the campus of St. Paul's, my first thoughts 
regarding the growing disparity between Historically Black Colleges and 
other institutions of higher education with respect to the 
infrastructure began leading up to this day.
  This Senate has addressed similar pieces of legislation in the past 
year. In 2003, a similar bill passed in the Senate with a roll call 
vote of 97 to 0. In 2005, a similar bill passed in the Senate by 
Unanimous Consent. So I am pleased today, together with Senator Kerry 
and Senator Webb, to offer this not only on behalf of ourselves, but 
the many Senators who through the years--some who have now retired--
have worked hard on this legislation.
  Again, I salute the faculty and presidents, and so forth, at these 
institutions and, most particularly, I salute the students who are 
ready and willing to seize the opportunity that this bill will provide 
to advance their intellectual skills to meet the requirements of 
today's workforce, so that America can be competitive.
  I yield the floor.
  Mr. KENNEDY. Mr. President, I thank my friend from Virginia, Senator 
Warner, for his excellent presentation, and also for reminding us about 
the importance of math and science and technology and engineering. As a 
member of the Armed Services Committee, I think his involvement and 
focus on this is also enormously important because he understands that 
education is not only a value to the individual, not only a value to 
our economy, but it is an essential aspect in terms of our national 
security. I have talked with him frequently about the National Defense 
Education Act that made such a difference in terms of availability. 
That was after Sputnik in the late 1950s, when the country came 
together and passed the National Defense Education Act. Still, some of 
those individuals are in key positions today in both private and public 
sectors. They are individuals who took advantage of that.
  In the Defense authorization, Senator Collins and I had spoken to the 
Senator when he was chairman of the Armed Services Committee. We have 
the small program that is directly focused on math, science, 
engineering, and technology that he included in legislation in the 
past. We have a number of enormously interested young people who are 
taking advantage of those scholarships. We remember the amendments the 
Senator offered on the reconciliation that he referenced here 
previously. So this is an area that he has shown enormous interest in 
and concern about. We are enormously grateful for his intervention.
  As the Senator knows, we passed the COMPETE Act earlier this year. In 
that COMPETE Act there are provisions to assist these minority 
institutions. Quite frankly, there are a lot of other priorities in 
that COMPETE Act. I think the fact that the Senator has given us this 
legislation and this focus is incredibly helpful to us. I thank the 
Senator for all of his efforts. It is no surprise to me that my 
colleague and friend from Massachusetts, Senator Kerry, is your strong 
cosponsor because I have talked with him about this subject matter on 
many occasions.
  I just draw the attention of the Senator to this chart, which I think 
makes the point the Senator pointed out. The bill provides resources 
for institutions to build capacity, develop facilities, and improve 
instruction; expands opportunities for institutions to serve more low- 
and middle-income students; supports greater financial literacy and 
strengthens the focus on studies in the STEM fields.
  That is a pretty good summation of what the Senator is trying to do. 
I think it is enormously important that this legislation be included. 
Senator Kerry is very interested in this, as well as Senator Webb. I 
thank all of you for giving this focus and attention.

[[Page 19974]]

This is a very important undertaking, very important legislation. I am 
grateful the Senator has taken the time to bring this to our attention.
  Mr. WARNER. Mr. President, I thank my friend who has worked with me 
for these 29 years. Following Senator Enzi, I wonder if I may have 2 
minutes on one other point.
  Mr. ENZI. Yes. Mr. President, I congratulate the Senator, Mr. Warner, 
for his tremendous effort, and not just on this bill but on the 
previous bills where his emphasis on science, technology, engineering, 
and math, has resulted in other grants that are available to students. 
We need to increase awareness among students of these opportunities, 
particularly in the lower grades, so they have the prerequisites they 
need to qualify for going to college. The Senator's emphasis on that 
has had tremendous effect on higher education and on the work we have 
done before.
  I also thank the Senator for the comments he made about his staff 
working through the weekend and ours working through the weekend. This 
is not a 9-to-5 job around here. People don't realize the amount of 
dedication our staffs have. As I say, they work through the weekend for 
these students. It happened to be a beautiful weekend in Washington, 
and they were indoors making telephone calls and making sure that 
everything works precisely right so we can pass this amendment today. I 
think we would be willing to take it on a voice vote.
  This will provide up-to-date technology, which is vitally important. 
Everything is operating off of technology today. And I especially 
appreciate the concern for and emphasis on minority-serving 
institutions having this opportunity. There is a disadvantage there, 
and we want to equalize that. The Senator has caught the essence of 
that and has the solution for it. I congratulate him. It will 
strengthen the national and digital and wireless infrastructure. That 
helps all of us because it increases national investment in that area 
and makes us all more communicative and to also have a greater ability 
for education.
  I thank the Senator.
  Mr. WARNER. Mr. President, I thank the Senator for the kind remarks 
of the Senators. Mr. President, I will just tell a short story. Senator 
Kennedy mentioned the importance of this to the Armed Forces to have a 
pool of trained individuals to join the military today. I would like to 
contrast it to an early experience I had in life. In the winter of 
1945, the war was raging in Europe--although it ended in May, it was 
still going on, as was the war in the Pacific. Like everybody else on 
my block, all students who were 17 and 18, we all joined the military. 
I don't claim to have a military career of any great consequence, but I 
will never forget the first night. We had been on a small train that 
stopped in stations all across the east coast picking up a dozen or two 
17- and 18-year-olds on the train. It was cold as the dickens, and the 
train was chugging its way up to the Great Lakes.
  We arrived at 2 or 3 in the morning. We were tired, cold, and huddled 
into a great big room. A petty officer, who was quite rotund, got up on 
a little platform and screamed at us, ``All you guys who can't read and 
write raise your hands.'' I had the benefit of a wonderful education in 
high school. I almost flipped out. I did not realize, really, that many 
people didn't have the basic skills that I had been given.
  Then the petty officer said, ``All you smart so-and-sos fill out the 
forms for the others.'' About 20, 25 percent of the fellows came out of 
the coal mines and steel mills of Pennsylvania and up through the 
valley, where the train went picking up these guys. So we filled out 
the forms.
  I want to say that those men had very short training once we got to 
the Great Lakes. The rest of us were shunted aside for technical 
schools. Within 90 days, they went aboard ships and right into the 
battle.
  On those ships in those days there were dozens of jobs that persons 
who could not read and write could perform, and perform very well. In 
no way do I denigrate their abilities to fight, as they did bravely in 
World War II--those who could not read and write. Today's ship in the 
U.S. Navy--take a destroyer. The destroyers today are considerably 
larger than the destroyers of the past. But the crews are dramatically 
reduced in number, which means that every one of those naval persons 
today has to have high-tech skills. It is true also in the Army and 
Marine Corps.
  When you visit Iraq and see the troops there, as most of us have, 
they are all working with high-tech equipment. There is no place 
available today in the military for one who is not skilled in high-tech 
work. So it is a changed society, albeit my story dates back more than 
a half century. They were fighters then, but in today's military we 
access those in the military with high school equivalent. The ones who 
show a technical proficiency are immediately moved into advanced 
technical courses.
  So this legislation is laying the foundation for those in these 
institutions who so desire to join the U.S. military, and they will 
arrive on the first day not requiring a fellow soldier, sailor, airman, 
or marine to fill out their form. They are all smart and able to work 
with the high-tech equipment.
  I yield the floor.
  The PRESIDING OFFICER. Is there further debate?
  If not, the question is on agreeing to the Warner amendment.
  The amendment (No. 2371) was agreed to.
  Mr. KENNEDY. Mr. President, I move to reconsider the vote.
  Mr. ENZI. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  The PRESIDING OFFICER. Who yields time?
  Mr. KENNEDY. I suggest the absence of a quorum and ask that the time 
be charged to the Warner amendment.
  The PRESIDING OFFICER (Mr. Whitehouse). Without objection, the clerk 
will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Mr. President, I ask unanimous consent that the remarks I 
will make be charged against the bill rather than the Warner amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Mr. President, Benjamin Franklin said:

       Genius without education is like silver in the mine.

  What he was saying is that silver still in the rock, in the ore, is 
worthless until it is mined, taken out of the rock. It is the same with 
education. Genius without education is akin to silver in a mine.
  We have, I am sure, a lot of geniuses who have not been educated, and 
that is too bad. That is what this legislation is all about. It is 
unquestioned that a college education is the single greatest weight on 
the scales of success. Yet today, more and more working-class Americans 
are shut out from the promise and opportunity of a college education 
because the price is out of their reach.
  Last week, we took a significant step to restoring that promise to 
hundreds of thousands of American students by passing the bipartisan 
Higher Education Access Act. It should not go unnoticed that the $17 
billion in new student aid and benefits represents the largest increase 
in college assistance since Congress passed the GI Bill of Rights more 
than 50 years ago.
  The bill we passed last week did this in a comprehensive way by 
increasing grant aid, expanding the number of students eligible for 
Federal aid, making loan debt more manageable, and expanding loan 
forgiveness options for those professions that we all recognize are 
important to society--teaching, social work, law enforcement, and 
health care.
  Today, in considering the higher education amendments, we authorize 
remaining programs and funding in the Higher Education Act. This bill 
is not weeks overdue or months overdue, it is years overdue.
  First, this legislation addresses the recent student loan scandals. 
With provisions in the bill--increased disclosure

[[Page 19975]]

requirements, prohibiting payments and gifts from lenders to colleges 
and financial aid administrators, and new restrictions on preferred 
lender lists--we are finally putting an end to these unacceptable 
practices and making sure the student loan system works in the 
interests of our students.
  As importantly, we tackle the rising costs of college. Despite the 
billions in new student aid and benefits in the bill we passed last 
week, if college costs continue to rise at the rate they have been--
tripling over the past 20 years--higher education will continue to 
remain further and further out of reach for too many Americans.
  I am pleased to support this legislation. I am also pleased students 
in Nevada have the good fortune of a State university system with some 
of the lowest costs in the Nation. But the same is not true everywhere, 
and this bill will hold colleges accountable if their costs increase 
too dramatically. It also ensures students and parents have information 
they need to make objective decisions based on the cost of college.
  Finally, the bill phases out the unnecessarily complicated Federal 
financial aid form which is currently 7 pages long--and probably more 
complicated than filing out a tax return--with a much simpler 2-page 
form.
  Again, thanks to Senators Kennedy and Enzi for the work they have 
done and the rest of the HELP Committee for their work in the 
formulation of this bill which, when combined with their efforts last 
week, reaffirms our commitment to making higher education affordable 
and accessible to America's students.
  Mr. KENNEDY. Mr. President, I say to the majority leader, we thank 
him so much for scheduling this legislation, both the underlying 
legislation we passed last week, which will make a difference to 
students, and the authorization. I know my friend and colleague from 
Wyoming, as well as others, knows we saw this authorization expire some 
3 years ago. So this is long overdue.
  The idea that we passed both these pieces of legislation together is 
going to make a major difference, not only to the students, about whom 
we are primarily concerned, and to their families but also to the 
colleges and universities and to all the other entities in the 
educational community.
  We are moving along with these amendments. We are very thankful for 
all the cooperation we have received this afternoon. Hopefully, we are 
able to conclude this bill either late tonight or tomorrow. This will 
be a very significant and important time in terms of educational policy 
for our country.
  I thank the leader very much.
  Mr. REID. Mr. President, if I may say to my friend, the distinguished 
Senator from Massachusetts, and my friend from Wyoming, we did not have 
time to do this legislation, but we had to take time to do this 
legislation. This is an example of how committees working together can 
get work done. Committees do a lot of work, but much of what comes out 
of the committees is done on a partisan basis. Democrats vote for it, 
Republicans vote against it. Frankly, we cannot get those bills to the 
floor. We cannot get them done.
  I repeat, we did not have time to do this legislation. We have so 
much to do. We have appropriations bills we need to do. As soon as we 
finish this bill, we are going to move to Homeland Security 
appropriations, which is essential. SCHIP legislation, we have to do 
that. We have to do the conference report on the 9/11 Commission 
recommendations. We have to complete the work we have done and gone so 
far down the road on ethics and lobbying reform.
  This is an example, and I say this to all committees, to work 
together such as these two men have worked together and we can get 
things done. That is how we were able to get the Energy bill passed 
earlier. We took those provisions from the Energy Committee, the 
Environment and Public Works Committee, and the Commerce Committee, on 
which there was unanimity, everyone agreed. I took those provisions and 
put them in a package, and that was the bill we passed in the Senate.
  I appreciate Senator Kennedy mentioning my name, but the work was 
done by this committee last week and arriving at the point where we can 
have this legislation completed today. This is important legislation.
  I heard Senator Warner on the floor today talking about when he went 
in the military. They had those who couldn't read or write during World 
War II raise their hand. Twenty-five percent of the people on the ship 
could not read or write. We don't have that situation today. But we do 
have a situation where there are many people, such as the example I 
gave, who have the intellect to have a college education and simply 
cannot do it. It is as Benjamin Franklin said, when the silver is still 
in the mine, it doesn't help anybody. When we have the people who have 
the ability to be educated who cannot be educated, it doesn't speak 
well of our country.
  We have to continue down that road of educating our students, and 
this legislation, tied in with what we did last week, is a giant step 
forward.
  I again express my appreciation to Senators Kennedy and Enzi and the 
members of the committee for allowing us to get to the point where we 
have time to do a bill that we don't have time to do.
  Mr. KENNEDY. Mr. President, the Senator from Hawaii was on the floor 
a moment ago. We are expecting his amendment.
  The PRESIDING OFFICER. The Senator from Hawaii.


                           Amendment No. 2372

  Mr. AKAKA. Mr. President, I send an amendment to the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Hawaii [Mr. Akaka] proposes an amendment 
     numbered 2372.

  Mr. AKAKA. Mr. President, I ask unanimous consent that the reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

  (Purpose: To include Native Hawaiians as groups underrepresented in 
        graduate education for purposes of the Ronald E. McNair 
                 postbaccalaureate achievement program)

       At the end of section 403, add the following:
       (i) Additional Amendment to Postbaccalaureate Achievement 
     Program.--Section 402E(d)(2) (as redesignated by subsection 
     (e)(2)) (20 U.S.C. 1070a-15(d)(2)) is further amended by 
     inserting ``, including Native Hawaiians, as defined in 
     section 7207 of the Elementary and Secondary Education Act of 
     1965, and Pacific Islanders'' after ``graduate education''.

  Mr. AKAKA. Mr. President, I yield myself 15 minutes.
  In our United States, Native Hawaiians and other Pacific Islanders 
are far less likely than the average American to earn a bachelor's or 
graduate degree. This makes Native Hawaiians and other Pacific 
Islanders drastically underrepresented in higher education. 
Unfortunately, Pacific Islanders are left with fewer opportunities to 
lift themselves out of underrepresentation because, unlike African 
Americans, unlike American Indians, unlike Alaska Natives, and unlike 
Hispanics, Native Hawaiians and Pacific Islanders have been largely 
excluded from programs such as the McNair Achievement Program based on 
a determination that they are not an underrepresented group.
  The McNair program is designed to prepare young men and women from 
disadvantaged backgrounds who have demonstrated strong academic 
potential for doctoral studies through involvement in research and 
other scholarly activities. However, until the underrepresentation of 
Native Hawaiians and Pacific Islanders is addressed, the promise of the 
McNair program to help the underrepresented achieve their dreams of 
higher education will remain only partially fulfilled.
  According to a study conducted by the Pacific Islander Access 
project, Native Hawaiian and other Pacific Islanders have difficulty 
gaining access to programs for underrepresented minorities in higher 
education, such as the McNair Program. In fact, the study reported that 
more than 80 percent of these scholarship programs did not recognize 
Native Hawaiians and other Pacific Islanders as underrepresented.

[[Page 19976]]

This is due, in part, to a misconception that Native Hawaiians and 
other Pacific Islanders are not a distinct group but are, instead, an 
Asian subgroup. This misconception is, to a large extent, rooted in the 
Federal Government's policy from 1977 to 1997 to lump Asians and 
Pacific Islanders into one category. Fortunately, in 1997, this Federal 
policy was changed to recognize that Pacific Islanders and Asians are 
separate and distinct groups. However, many programs, including the 
McNair Program, have yet to catch up with this Federal policy.
  It is to our Nation's credit that we have developed programs such as 
the McNair Program in response to the needs of our country's minority 
students, and my amendment in no way excludes other underrepresented 
groups. Rather, this amendment simply ensures that Native-Hawaiian and 
other Pacific-Islander students are also allowed full access to the 
opportunities afforded the McNair Program, which has opened the door to 
an advanced degree for so many in our Nation.
  I urge my colleagues to support this amendment and help young Native 
Hawaiians and other Pacific Islanders achieve their potential.
  I wish to thank the chairman for his zealous attitude in which he has 
tried to help all those in the United States who need help in 
education, and I commend him for that.
  Mr. President, I yield the floor.
  Mr. KENNEDY. Mr. President, I wish to thank my friend from Hawaii for 
bringing this to our attention, this situation which works to the 
disadvantage of Pacific Islanders and specifically Native Hawaiians. He 
quite appropriately points out that other groups are included as 
underserved populations but the Native Hawaiians are not and the 
Pacific Islanders are not. In many respects, the fact that they are not 
able to participate in these programs works to the disadvantage of the 
population generally from being included in terms of the life of not 
only their communities but the communities of our country. All his 
amendment does is to make sure they are going to be included in this 
program.
  What is this program? This program is really a helping hand to those 
students who are going on to college--in this case, it would be the 
Hawaiians and the Pacific Islanders--a helping hand in counseling, 
giving guidance to these students so that they might participate in 
these other programs which offer real hope in terms of technology in 
the future. Effectively, his amendment says that Pacific Islanders and 
Native Hawaiians will be included so as to qualify for these programs 
in ways that mean students, who otherwise would be excluded from 
getting counseling--the helping hand--could continue for graduate 
degrees. It seems to me they should be included, and the amendment 
makes a good deal of sense.
  For those reasons and the excellent reasons the Senator mentioned 
earlier, I thank him for bringing this to our attention. I must say, I 
was not aware those groups had been excluded, quite frankly, from the 
program. I don't know how this originally happened, but we always learn 
a good deal from our colleagues here in the Senate, and we have learned 
a good deal about this issue today. As always, the Senator from Hawaii 
is out front when it comes to issues on education and opportunity for 
Native Hawaiians and for Pacific Islanders, and we are very grateful to 
him for bringing this to our attention.
  Hopefully, we will accept this and make sure it is a part of the 
legislation.
  Mr. ENZI. Mr. President, I, too, wish to thank Senator Akaka for 
bringing this to our attention. That is one of the reasons we have 100 
people in the Senate and 435 people on the House side, so that we bring 
all these various backgrounds together, so that something which may 
have been overlooked can be corrected, and the amendment process is one 
of the places where we correct that.
  As Senator Akaka has said, this amendment would provide Native 
Hawaiians and Pacific Islanders with eligibility for the Ronald McNair 
Post-Baccalaureate Achievement Program, and that is a program which 
provides assistance to disadvantaged students who are pursuing doctoral 
degrees. The students in the McNair Program get research opportunities, 
they get seminars, they get summer internships, they get tutoring and 
academic counseling, and they get assistance in securing graduate 
admission and financial aid mentoring. Those are all things, of course, 
which increase the probability and the possibility that a person will 
get their doctoral degree.
  I am sure it wasn't anyone's intention to leave these groups out, so 
this amendment, of course, would include the Native Hawaiians to the 
list of students eligible for this program. So, in his usual way of 
taking a careful look at things, I appreciate his doing this and enjoy 
all the times we have worked together on financial literacy.
  I think there is still someone taking a look at the exact wording on 
this, so hopefully we can get that done and get to a voice vote a 
little later.
  Mr. KENNEDY. Mr. President, will the Senator yield for a question?
  Am I correct in understanding that Senator Akaka was a principal in 
an elementary school.
  Mr. AKAKA. That is true. I was a principal in an elementary school.
  Mr. KENNEDY. In an elementary school.
  Mr. AKAKA. Yes.
  Mr. KENNEDY. How many years were you a principal in an elementary 
school?
  Mr. AKAKA. I was a principal for 6 years, before I was moved into the 
Governor's office.
  Mr. KENNEDY. Good. Well, I thank the Senator.
  Senator Akaka brings many different qualities to his service, but the 
fact that he was a principal in an elementary school reflects that he 
understands the importance of education, and he knows this community.
  It gives us additional information to understand his strong 
commitment in this area of opportunity for Pacific Islanders and for 
Native Hawaiians.
  I think, Mr. President, we will hold up, but I expect we will pass 
this amendment in a short while. So I think at this time we are just 
going to hold, if we could.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. Without objection, the time will be charged to 
the amendment.
  The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. ENZI. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ENZI. Mr. President, I ask unanimous consent that we set aside 
the pending amendment so that we can proceed to another amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 2373

  Mr. ENZI. Mr. President, I send to the desk an amendment by Senator 
Burr.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       The Senator from Wyoming [Mr. Enzi], for Mr. Burr, proposes 
     an amendment numbered 2373.

  Mr. ENZI. Mr. President, I ask unanimous consent that further reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

  (Purpose: To amend provisions relating to the study group regarding 
     simplifying the process of applying for Federal financial aid)

       Strike lines 14 through 23 on page 814 and insert the 
     following:
       ``(1) Formation of study group.--Not later than 90 days 
     after the date of enactment of the Higher Education 
     Amendments of 2007, the Comptroller General of the United 
     States and the Secretary of Education shall convene a study 
     group whose membership shall include the Secretary of the 
     Treasury, the Director of the Office of Management and 
     Budget, the Director of the Congressional Budget Office, 
     representatives of institutions of higher education with 
     expertise in Federal and State financial aid assistance, 
     State chief executive officers of higher education with a 
     demonstrated commitment to simplifying the FAFSA, and such 
     other individuals as the Comptroller General and the 
     Secretary of Education may designate.

[[Page 19977]]

       Strike line 22 on page 821 and all that follows through 
     line 2 on page 822 and insert the following:
       ``(7) Report.--Not later than 1 year after the date of 
     enactment of the Higher Education Amendments of 2007, the 
     Comptroller General and the Secretary shall prepare and 
     submit a report on the results of the study required under 
     this subsection to the authorizing committees.''.

  Mr. ENZI. Mr. President, Federal student aid is a tangled web of tax, 
grant, loan, and savings programs with rules and regulations that are 
so complicated, many prospective students don't know that they really 
can afford to go to college. Families have to fight their way through a 
maze of paperwork. We have talked about this several times, the 
difficulty of the present financial aid form. Nearly 10 million 
prospective aid recipients must file that form each year, and 
submitting the form is the only way for families to determine their 
eligibility for Federal grants and loans.
  The free application for federal financial aid is longer and more 
complicated than a Federal tax form. It has 5 pages and 127 questions, 
so it is longer than the form 1040EZ, which is 1 page and 37 questions 
for filing your taxes, or the form 1040A, which is 2 pages and 83 
questions. It is comparable to the form 1040, with 2 pages and 118 
questions. The contrast between the tax forms and the financial aid 
forms is especially informative. With a third of the financial aid form 
questions and a fifth of its pages, the IRS captures the information 
needed to determine tax liability for the very population targeted by 
the Pell grant.
  Financial aid officers and education specialists typically explain 
that the complexity of the form is a necessary evil, without which we 
could not target aid to students with the greatest need. The FAFSA, 
financial aid form, is long, it is argued, so that it can precisely 
measure who most needs aid. However, a few economists have recently 
completed research that measured empirically how much complexity in the 
current aid system contributes to its targeting. They found this 
complexity adds very little to the targeting of aid to those who most 
need it. Only a handful of questions on the FAFSA determine eligibility 
for Federal aid, and most of these questions are currently found even 
in the 1040EZ, the tax form.
  In response, a small but growing number of researchers, economists, 
and leaders in higher education have offered proposals to reduce the 
FAFSA to one page and to prepopulate a student's FAFSA with the data 
their families have already submitted to the IRS. Such an approach 
would reduce the time-consuming and confusing FAFSA paperwork which 
requires parents and students to report to one Federal agency--the 
Department of Education--data they have already submitted to another 
Federal agency--the IRS.
  Two North Carolinians--Senator Burr, on whose behalf I have submitted 
this amendment, and Erskine Bowles, who is the President of the 
University of North Carolina System, teamed up in the belief they could 
make applying for financial aid simpler and easier. President Bowles 
knows simplification of Federal applications is possible. As 
Administrator of the Small Business Administration in the 1990s, 
Erskine Bowles reduced the inch-thick SBA loan application to one page.
  After a conversation between the two this spring, President Bowles 
put together a task force across the State of North Carolina and gave 
them 90 days to come up with a one-page form which made better use of 
data parents had already reported to the IRS. This June, President 
Bowles delivered the mockup of this one page to Senator Burr. So North 
Carolina showed we can and should work more rapidly to simplify the 
process of financial aid, both by reducing the length of the 
application and making better and more efficient use of data parents 
have already submitted to the Federal Government through their IRS 
forms.
  I would mention we have had a task force, largely my staff, who has 
been working on reducing it. We have it down to a one-page form. But 
Senator Burr's amendment speeds up the time we study included in the 
higher education bill, so the relevant offices: Education, Comptroller 
General, Treasury, Office of Management and the Congressional Budget 
Office and representatives of higher education and State higher 
education executive officers who have a demonstrated commitment to 
simplifying the application for financial aid, report back to Congress 
in 1 year, how we could simplify the application and make even better 
use of data parents have already submitted to the Federal Government.
  America's students and parents should not have to wait any longer 
than necessary for simplification. One stage of simplification should 
not preclude another stage of simplification. We do want to see that 
those who need the money the most have the highest priority. We want 
that to be done as simply as possible, so it doesn't discourage people 
from applying.
  I appreciate this amendment to try to speed up the time to do a 
further simplification of FAFSA. I am pretty sure there are no 
objections on the other side of the aisle. We will leave the time open 
for further debate on that as well.
  I suggest the absence of a quorum and allocate the time to the 
amendment.
  The PRESIDING OFFICER (Mr. Whitehouse). Without objection, it is so 
ordered. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 2328

  Mr. REID. Mr. President, I ask the pending amendment be set aside 
and, as one of the Democratic amendments, I call up amendment No. 2328.
  The PRESIDING OFFICER. Without objection, it is so ordered. The clerk 
will report.
  The bill clerk read as follows:

       The Senator from Nevada [Mr. Reid] proposes an amendment 
     numbered 2328.

  Mr. REID. I ask unanimous consent the reading of the amendment be 
dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

    (Purpose: To provide for campus-based digital theft prevention)

       At the end of the bill, add the following:

     SEC. 802. CAMPUS-BASED DIGITAL THEFT PREVENTION.

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

     ``SEC. 494. CAMPUS-BASED DIGITAL THEFT PREVENTION.

       ``(a) In General.--Each eligible institution participating 
     in any program under this title which is among those 
     identified during the prior calendar year by the Secretary 
     pursuant to subsection (b)(2), shall--
       ``(1) provide evidence to the Secretary that the 
     institution has notified students on its policies and 
     procedures related to the illegal downloading and 
     distribution of copyrighted materials by students as required 
     under section 485(a)(1)(P);
       ``(2) undertake a review, which shall be submitted to the 
     Secretary, of its procedures and plans related to preventing 
     illegal downloading and distribution to determine the 
     program's effectiveness and implement changes to the program 
     if the changes are needed; and
       ``(3) provide evidence to the Secretary that the 
     institution has developed a plan for implementing a 
     technology-based deterrent to prevent the illegal downloading 
     or peer-to-peer distribution of intellectual property.
       ``(b) Identification.--For purposes of carrying out the 
     requirements of subsection (a), the Secretary shall, on an 
     annual basis, identify--
       ``(1) the 25 institutions of higher education participating 
     in programs under this title, which have received during the 
     previous calendar year the highest number of written notices 
     from copyright owners, or persons authorized to act on behalf 
     of copyright owners, alleging infringement of copyright by 
     users of the institution's information technology systems, 
     where such notices identify with specificity the works 
     alleged to be infringed, or a representative list of works 
     alleged to be infringed, the date and time of the alleged 
     infringing conduct together with information sufficient to 
     identify the infringing user, and information sufficient to 
     contact the copyright owner or its authorized representative; 
     and
       ``(2) from among the 25 institutions described in paragraph 
     (1), those that have received during the previous calendar 
     year not less than 100 notices alleging infringement of 
     copyright by users of the institution's information 
     technology systems, as described in paragraph (1).''.


[[Page 19978]]

  Mr. REID. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                    Amendment No. 2328, as Modified

  Mr. REID. Mr. President, I have an amendment pending, No. 2328, and I 
send a modification to the desk and ask unanimous consent I be allowed 
to modify this amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered. The 
amendment is so modified.
  The amendment, as modified, is as follows:

       At the end of the bill, add the following:

     SEC. 802. CAMPUS-BASED DIGITAL THEFT PREVENTION.

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

     ``SEC. 494. CAMPUS-BASED DIGITAL THEFT PREVENTION.

       ``(a) In General.--Each eligible institution participating 
     in any program under this title which is among those 
     identified during the prior calendar year by the Secretary 
     pursuant to subsection (b)(2), shall--
       ``(1) provide evidence to the Secretary that the 
     institution has notified students on its policies and 
     procedures related to the illegal downloading and 
     distribution of copyrighted materials by students as required 
     under section 485(a)(1)(P);
       ``(2) undertake a review, which shall be submitted to the 
     Secretary, of its procedures and plans related to preventing 
     illegal downloading and distribution to determine the 
     program's effectiveness and implement changes to the program 
     if the changes are needed; and
       ``(3) provide evidence to the Secretary that the 
     institution has developed a plan for implementing a 
     technology-based deterrent to the illegal downloading or 
     peer-to-peer distribution of intellectual property.
       ``(b) Identification.--For purposes of carrying out the 
     requirements of subsection (a), the Secretary shall, on an 
     annual basis, identify--
       ``(1) the 25 institutions of higher education participating 
     in programs under this title, which have received during the 
     previous calendar year the highest number of written notices 
     from copyright owners, or persons authorized to act on behalf 
     of copyright owners, alleging infringement of copyright by 
     users of the institution's information technology systems, 
     where such notices identify with specificity the works 
     alleged to be infringed, or a representative list of works 
     alleged to be infringed, the date and time of the alleged 
     infringing conduct together with information sufficient to 
     identify the infringing user, and information sufficient to 
     contact the copyright owner or its authorized representative; 
     and
       ``(2) from among the 25 institutions described in paragraph 
     (1), those that have received during the previous calendar 
     year not less than 100 notices alleging infringement of 
     copyright by users of the institution's information 
     technology systems, as described in paragraph (1).''.
       (c) The Secretary shall not find any of the 25 institutions 
     of higher education described in paragraph (b)(1) to be 
     ineligible for continued participation in a program 
     authorized under this subchapter because of failure to comply 
     with this section.

  Mr. REID. Mr. President, I suggest the absence of a quorum and ask 
unanimous consent that it be charged how it was being charged before.
  The PRESIDING OFFICER. Without objection, it is so ordered. The clerk 
will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. SESSIONS. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 2374

  Mr. SESSIONS. Mr. President, for several years I have been looking at 
the question of student loans and the abuse that often exists in that 
process. Also, another issue that has concerned me is America's lack of 
physicians in numbers sufficient to meet our current demands and the 
demands we may have in the future. So I have an amendment today that, 
hopefully, the bill managers, Senators Kennedy and Enzi, might feel 
comfortable supporting. It deals with both of those issues, I think, in 
a way that takes us in a positive direction.
  The Association of American Medical Colleges, after the 
recommendation of Dr. Jordan Cohen, their president a couple years ago, 
recently stated it is their official policy that medical school 
enrollment should be increased by 30 percent. Most American medical 
schools are now already beginning to increase enrollment, some at about 
the rate of 15 percent, which can be done in most colleges without 
great expense. But as you get closer to a one-third increase, it 
actually begins to put a bite on people's programs. They have to have 
faculty, perhaps buildings, and other capabilities that may incur 
substantial costs.
  One of the things that has concerned me--and I am not sure most 
Americans are fully aware of it--is that a shortage of physicians is 
being filled by an increasing number of graduates from foreign medical 
schools. Many of these are offshore schools in the Caribbean--for-
profit schools. Many of them don't require test scores to get in, and 
they are not up to the standard of American schools. That is a fact. We 
have the finest, most magnificent medical schools in the world. We have 
a tremendous teaching and training program. We have some of the best 
equipment any schools could imagine in our country. So it is a special 
thing.
  But I have been concerned that perhaps we have been too tough on 
enrollment, requiring too high of test scores, sometimes denying good 
people with good leadership skills, such as class presidents and 
captains of the football team, who scored a little bit below someone 
who had a higher physics or chemistry score, and they don't get in. So 
I think we need to expand the number of people who come into medical 
school, and we ought to be open to qualities that are proven to further 
medical success, frankly. So I am concerned about that.
  The interesting development I have discovered that goes to the 
question of our Federal dollars and how we are supporting medical 
education is indicated by this chart. It deals with the number of loans 
certified for U.S. residents who are attending foreign schools. In 
general, whether you are going for a semester abroad to Italy or Brazil 
or England or wherever, this shows that during the 1993-1994 academic 
year, there were under 4,600 loans, and ten years later there were over 
13,000 loans. That might make one think this is a good thing, that more 
Americans are taking a semester abroad, as is common in a lot of 
schools. They encourage students to take a semester abroad, and it is 
an enriching experience--maybe even a year abroad. One might think that 
is what that issue deals with. But let's show what is happening here.
  Look at this chart. Of the 13,000 students who attend foreign 
schools, about 9,000 of those are attending foreign medical schools. 
About 75 percent of the total study abroad loan volume of 2003, or 
about $170 million--and I am sure that number has gone up--is now for 
loans to students who attend foreign medical schools. That is a rather 
shocking number and a dramatic number. It comes from a GAO report, 
dated July of 2003. That is a matter I would call attention to.
  What about these loans? Are these people attending top Paris medical 
schools or what? Look at them in terms of the volume of loans, first. 
Let's look at No. 1, the No. 1 school in the world where students 
receive U.S. Federal loan money is a medical school in Dominica. They 
only have one medical school on that island in the Caribbean, and they 
receive $35 million in loan volume, with 1,700-plus students receiving 
loans to go to that school.
  The next one in volume is Grenada. Remember during President Reagan's 
presidency, when we had an invasion of Grenada, where we had American 
medical students and their safety was of great concern to us when that 
invasion took place. Grenada has one medical school. It gets $30 
million and has 1,500 students attending.
  The third country to receive Federal loan money for medical school is 
Mexico. They have 11 schools and they get $27 million. England is 
fourth. They have 182 schools in England, but they only get $25 million 
in student loans, and they have quite an advanced medical program 
there.

[[Page 19979]]

  The next school on the list--the next country is the Dominican 
Republic, another island school. The Dominican Republic has six 
schools, and they receive $20 million in student loans each year. The 
next one is St. Maarten, another Caribbean island, $16 million. Next is 
Canada. We would think that would be up there at the top, would we not? 
Canada, our neighbor. Canada has 108 schools and they get only $15 
million. The next one is another island school in the Caribbean, St. 
Kitts, they have two schools and they get $14 million.
  I think that begins to show the problem we are dealing with. I would 
suggest we need to take some real interest in it.
  So I have offered an amendment that would deal with it. I send my 
amendment to the desk, as modified, and ask for its consideration.
  The PRESIDING OFFICER (Mr. Webb). The clerk will report.
  The legislative clerk read as follows:

       The Senator from Alabama [Mr. Sessions] proposes an 
     amendment numbered 2374.

  Mr. SESSIONS. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

 (Purpose: To amend the provisions of the Higher Education Act of 1965 
   regarding graduate medical schools located outside of the United 
                                States)

       At the end of title I, add the following:

     SEC. 114. FOREIGN MEDICAL SCHOOLS.

       (a) Percentage Pass Rate.--
       (1) In general.--Section 102(a)(2)(A)(i)(I)(bb) (20 U.S.C. 
     1002(a)(2)(A)(i)(I)(bb)) is amended by striking ``60'' and 
     inserting ``75''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on July 1, 2010.
       (b) Study.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall--
       (A) complete a study that shall examine American students 
     receiving Federal financial aid to attend graduate medical 
     schools located outside of the United States; and
       (B) submit to Congress a report setting forth the 
     conclusions of the study.
       (2) Contents.--The study conducted under this subsection 
     shall include the following:
       (A) The amount of Federal student financial aid dollars 
     that are being spent on graduate medical schools located 
     outside of the United States every year, and the percentage 
     of overall student aid such amount represents.
       (B) The percentage of students of such medical schools who 
     pass the examinations administered by the Educational 
     Commission for Foreign Medical Graduates the first time.
       (C) The percentage of students of such medical schools who 
     pass the examinations administered by the Educational 
     Commission for Foreign Medical Graduates after taking such 
     examinations multiple times, disaggregated by how many times 
     the students had to take the examinations to pass.
       (D) The percentage of recent graduates of such medical 
     schools practicing medicine in the United States, and a 
     description of where the students are practicing and what 
     types of medicine the students are practicing.
       (E) The rate of graduates of such medical schools who lose 
     malpractice lawsuits or have the graduates' medical licenses 
     revoked, as compared to graduates of graduate medical schools 
     located in the United States.
       (F) Recommendations regarding the percentage passing rate 
     of the examinations administered by the Educational 
     Commission for Foreign Medical Graduates that the United 
     States should require of graduate medical schools located 
     outside of the United States for Federal financial aid 
     purposes.

  Mr. SESSIONS. So to briefly summarize what the amendment does, it 
attempts to deal with this issue in a balanced but effective way. It 
seeks to protect taxpayers' dollars from subsidizing foreign medical 
schools that are failing to show positive results, and we have a way to 
determine which ones are showing results. Currently, in order to 
qualify for student financial aid, we have a rule in effect. That rule 
is that the foreign medical school must show 60 percent of its 
graduates pass the Educational Commission for Foreign Medical 
Graduates' Examination. This is a test you have to take after you 
graduate to become licensed to practice medicine in the United States. 
So, currently, that rule is 60 percent. This amendment would raise the 
bar from 60 to 75 percent, to be implemented in 2 years' time. It would 
give them 2 years to prepare for this.
  I believe it is a reasonable change because approximately 90 percent 
of U.S. medical school graduates pass medical licensing examinations on 
their first attempt. That is a big difference. It is indisputable that 
the test failure rate is indicative of the quality of the instruction 
that one receives at a school.
  During the next 2 years, prior to implementation of the new 75-
percent standard, the amendment also requires the Government 
Accountability Office to conduct a study on the amount of Federal aid 
going to offshore medical schools, the percentage of foreign medical 
graduates who pass the examination on the first try or after multiple 
attempts, the percentage of recent foreign medical school graduates 
practicing medicine in the United States, and a description of where 
and what type of medicine they are practicing and asking for 
recommendations for the examination passage rate the United States 
should require of foreign medical schools who wish to qualify so that 
they can receive U.S. Federal student aid.
  I am also modifying the amendment by adding a portion of the study to 
examine the rate of malpractice lawsuits and of lost or revoked medical 
licenses from graduates of foreign medical schools as compared to 
graduates of U.S. medical schools.
  Now, the study we have, the GAO report, would involve this. It would 
examine what is happening with students of foreign medical schools 
after they leave in order to determine how effective the schools are. 
While many of these schools likely do a pretty good job, and some I 
think do, there is no way to know for sure, as they are not licensed or 
accredited by any American entity.
  Many foreign medical schools do not use cadavers--do not use 
cadavers--but instead have students perform procedures that would be 
done, preferably on cadavers, by simulation on a computer. I don't know 
about you, but I don't want a doctor operating on me who has been 
practicing using a mouse and a keyboard.
  In fact, an article in the Pittsburgh Tribune Review earlier this 
year quoted Dr. Cameron Wilkinson, medical director of Joseph N. France 
Hospital in St. Kitts and supervisor of clinical rotations for two 
medical schools on the island as saying this--this is at St. Kitts in 
the hospital there, the training school, and he said this: ``No medical 
school here would have a cadaver.''
  He said: ``It would be great,'' but he explained the schools in the 
islands aren't equipped to work with them. This was in reference to a 
school on the island that was actually found to have cadavers for 
clinical instruction, but they kept them in black bags in an unsterile, 
unlocked, air-conditioned room. They were not following protocol for 
the use of cadavers and lacked the necessary documents to have them 
shipped from the United States. They also did not smell like 
formaldehyde, which is one reason I didn't go to medical school, having 
gone into a place where something was kept in formaldehyde. But that is 
a great concern, as formaldehyde preservation is standard procedure for 
institutions that utilize cadavers in medical research. Thus, this 
school was handling cadavers inappropriately.
  But this story also makes clear that schools on the island, for the 
most part, never use cadavers. Many of these schools do not even 
require that students take the MCAT; that is, the Medical College 
Admission Test. Standards at some of these schools are much lower than 
standards at American medical schools in regard to MCAT scores and 
GPAs--grade point averages--if they have those requirements at all.
  The Association of American Medical Colleges states that about--get 
this--this is the Association of American Medical Colleges. They have 
found that about one in four physicians practicing in the United States 
today, and about one in four physicians in training in the United 
States today, are foreign medical graduates. This is a remarkable 
statistic, when we have this magnificent medical school system in our 
country. We have gotten out of sync.
  These foreign medical school graduates are, in many ways, needed to 
fill

[[Page 19980]]

the gaps that currently exist in the American medical school education 
system. In June of 2006, as I said, the Association of American Medical 
Colleges recognized this shortfall and formally recommended a 30-
percent increase in medical school graduates by 2015. That expansion 
would allow for 5,000 new medical students each year beginning in 2015.
  The PRESIDING OFFICER. The Senator has used the 15 minutes provided 
for him under the order for the amendment.
  Mr. SESSIONS. I thank the Chair. I ask unanimous consent for 1 
additional minute.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  Mr. SESSIONS. Mr. President, I would note that the U.S. population is 
increasing by 25 million each decade. The number of people over 65 will 
double by 2030. We expect more and more out of health care. We must 
have additional medical physicians, and we need to increase our own 
system and reduce the amount of money, taxpayer money, going to medical 
schools that are below par.
  This bill would make changes and move us in that direction. I ask our 
leaders to consider that.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
  Mr. KENNEDY. Mr. President, I am going to urge that the Senate accept 
the Senator's amendment. It has been a number of years since our HELP 
Committee got into looking at the foreign medical schools, as the 
Senator pointed out. I think there are a number that are exceptional 
and incredibly good. Others are moderately good, and there are others 
that don't pass muster. It is, I think, useful to get that kind of 
information. We have a health care crisis. Personnel is a key aspect of 
the health care crisis. We have a concern about what the specialties 
are in different areas in this country. The amendment the Senator is 
offering is going to help us understand what is happening with these 
foreign medical schools. The amount of financial aid they receive--we 
ought to be updated on that. We ought to know the percentage of 
students that are going to pass that exam. We ought to know what 
specialties they are moving into and where they are practicing, the 
types of medicine they are practicing; that is exceedingly important 
and useful.
  The Senator has other references in here, too, in terms of the number 
of times to take the exam and medical licenses that are revoked. I 
think it would provide important information, certainly, for our 
committee. We ought to have an update of information on what is 
happening. Also, I think it is important for the American taxpayer to 
understand what is happening as well, in terms of this kind of 
investment, so I thank the Senator. This is an important area. We have, 
as the Senator knows, programs to provide medical personnel--this is 
related but not directly on subject--in underserved areas in the United 
States, which has worked quite well. That is not the target of this 
particular program. But it is important that we have this kind of 
information. It will be useful for our HELP Committee to have it. So I 
hope the Senate will accept it. I thank the Senator for raising this 
issue. I think it is useful and important. We hope we can persuade our 
House Members to accept it at the appropriate time as well.
  The PRESIDING OFFICER. If there is no further debate, the question is 
on agreeing to the amendment.
  The amendment (No. 2374) was agreed to.
  Mr. KENNEDY. Mr. President, I move to reconsider the vote.
  Mr. ENZI. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. KENNEDY. Mr. President, I think we are prepared to accept the 
Akaka amendment, if there is no further debate.
  The PRESIDING OFFICER. If there is no further debate, the question is 
on agreeing to amendment No. 2372.
  The amendment (No. 2372) was agreed to.
  Mr. KENNEDY. Mr. President, I move to reconsider the vote.
  Mr. ENZI. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. ENZI. Mr. President, I think we are prepared to move on with the 
Burr amendment as well. That is next.
  The PRESIDING OFFICER. If there is no further debate, the question is 
on agreeing to amendment No. 2373.
  The amendment (No. 2373) was agreed to.
  Mr. ENZI. Mr. President, I move to reconsider the vote.
  Mr. KENNEDY. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. KENNEDY. Mr. President, we have remaining time on the amendments 
we have dealt with previously. I believe we have 15 minutes. I am glad 
to yield it to the Senator from Oregon. He wants to talk on another 
subject.
  The PRESIDING OFFICER. The Senator from Oregon is recognized.


                                  chip

  Mr. WYDEN. Mr. President, I thank the Senator from Massachusetts and 
the Senator from Wyoming for their thoughtfulness.
  This is especially appropriate, since Chairman Kennedy and the 
distinguished ranking minority member are on the floor. Both of them 
have great interest and involvement in health care. I thought it would 
be appropriate to talk for a few minutes about the upcoming CHIP 
legislation, the legislation that deals with the Children's Health 
Insurance Program, which is so important to America's youngsters.
  There was a markup in the Senate Finance Committee last week and it 
passed out overwhelmingly, to a great extent because of the very 
important and laborious work done by Chairman Baucus, Senator 
Rockefeller, and also the senior Republicans on the committee, Senators 
Grassley and Hatch. I commend them greatly for their toil.
  I wish to take a couple of minutes today to talk about the issue 
because the administration has indicated that at this point they would 
veto the legislation, which came from the Senate Finance Committee by a 
17-to-4 vote. I am very hopeful they will choose not to veto this 
legislation because I felt it was striking in the Finance Committee 
last week that Senator after Senator on both sides of the aisle, 
including Senator Conrad and Senator Lott, for example--leaders of 
their respective parties on economic issues--they concurred that the 
system in this country is broken. The health care system cannot control 
the costs. Millions fall between the cracks. Administrative expenses 
are soaring. We have largely sick care rather than health care. This is 
something Democrats and Republicans alike agree on.
  The administration has the view that one of the key changes that 
needs to be made is the Federal tax rules as they relate to health 
care. I share their view that these rules are a mess. But it is not 
going to be possible to get to the question of broader reform until you 
first get bipartisan cooperation on the urgent and immediate needs of 
this country's youngsters.
  Frankly, I came out of the markup last week very encouraged about the 
Senate's interest and desire, on a bipartisan basis, to move ahead to 
fix health care. I think the clear feeling in the Senate Finance 
Committee is that this country cannot afford to wait to fix health 
care. I know there are a lot of people, particularly in the media, 
think tanks, and others who think: Let's wait a couple of years for 
another Presidential election. Let's wait 2, 3 more years.
  That is sort of the way it goes for the political class. But for 
people who are hurting in this country and businesses that are 
struggling to meet the health needs of their workers and are dying to 
offer them coverage and cannot afford it, I don't think it is 
acceptable to say let's wait around a couple more years. It strikes me 
as pretty callous to say let's wait for another election, when we have 
all those needs of workers and businesses in parts of the country where 
there have been tremendous layoffs. They say: Well, they can wait a

[[Page 19981]]

couple more years before anybody talks about fixing health care.
  That is not what I heard in the Senate Finance Committee last week. I 
heard Senator after Senator--not just Senators Conrad and Lott but 
Senators Crapo, Salazar, and other colleagues on both sides of the 
aisle--making it clear they share my view that the health care system 
is broken. Now, for the first time in more than 13 years, the Senate 
has an opportunity to work in a bipartisan way to fix health care.
  Senator Bennett, a member of the Republican leadership, has joined me 
in legislation--the Healthy Americans Act--that has been able to pick 
up support of labor and business. We have structured it so all our 
citizens can get health care coverage, such as their Member of Congress 
does, through the private sector, at no greater cost than we are 
spending as a nation today. The bill has been put together so workers 
and employers win with the very first paychecks that are offered. I 
don't see why America should wait any longer to fix health care. What 
we should be doing is building on the important work of Chairman Baucus 
and Senator Grassley, Senators Hatch and Rockefeller and move to get 
CHIP passed in a bipartisan way and meet the immediate needs of this 
country's youngsters and then move on to do what I have heard members 
on both sides of the aisle on the Finance Committee call for last week 
and that is to fix American health care.
  The reality is--and you and I have had a chance to talk a bit about 
it, Mr. President--the system we have today was largely designed more 
than 70 years ago. It was set up after World War II. There were wage 
and price controls. Our troops were coming home. We wanted them to get 
good benefits. So we put it off essentially on the employer, and the 
Tax Code would change to make that possible. Well, a system designed 
for the 1940s surely doesn't make sense for 2007, when the typical 
worker changes jobs seven times by the time they are age 35.
  The current Tax Code is regressive and it promotes inefficiency. If 
you are a high-flying CEO, you can get a designer smile put on your 
face and write off the cost of that operation on your taxes. But if you 
are a hard-working woman in a furniture store and your company has no 
health plan, you get practically nothing.
  Now, my sense is, when the administration talks about changing the 
tax rules for health care and you look at what Senators were saying in 
the Senate Finance Committee about the system being broken, there is a 
pretty good opportunity to work in a cooperative way--not 2 or 3 years 
from now but to move forward in this session of Congress. To make that 
possible, it is going to be essential for the Bush administration to 
back off from this threat of vetoing the children's health program and 
to work with Members on both sides of the aisle so that this 
legislation can get passed, and it would be possible, on a bipartisan 
basis, to move on to fix our health care system.
  We have a lot to work with. Certainly, we have seen great interest at 
the State level. A number of States are already moving forward with 
innovative programs. Mr. President, as you and I have discussed, no 
State can fix problems they didn't cause. No State can deal with the 
regressivity and inefficiency of the Federal tax rules on health care. 
No State can deal with Medicare. No State can deal with what is called 
the ERISA Program, the Employee Retirement Income and Security Act, 
with respect to large employers and multiemployer programs. No State 
can deal with that. We are going to have to have bipartisan action at 
the Federal level.
  I have been very pleased that Senator Bennett has joined me in this 
bipartisan effort. My sense is there is something of an ideological 
truce coming on health care. We see a lot of bipartisan cooperation. 
Today, in fact, the distinguished Senator from Wyoming, Senator Enzi, 
and Chairman Kennedy are cooperating on issue after issue.
  Senator Bennett and I have said on health care that Republicans have 
moved a long way on coverage. We recognized that to fix health care, 
the people who are uninsured cannot just keep passing the bills on to 
people who are insured. We have to cover everybody, and Republicans 
have acknowledged that fact.
  Democrats, on the other hand, have been making it clear that they do 
not think we can just turn it all over to Government. We cannot turn 
everything in health care over to Government and expect everything to 
come out well. We have to have some private choices, choices in a fixed 
market, where insurance companies cannot cherry-pick and just take 
healthy people and send sick people over to Government programs more 
fragile than they are.
  We have to fix the private marketplace, but there ought to be choices 
in the private sector. That, too, is an opportunity for Democrats and 
Republicans in the Senate to work with the Bush administration once we 
get beyond the question of the children's health program.
  I am convinced that we are right on the cusp of being able to move 
forward on health care in a bipartisan way. In the other body, the 
Healthy Americans Act that Senator Bennett and I have been working for 
in the Senate will be introduced this week on a bipartisan basis. So 
that would then mean the Healthy Americans Act would be the first 
bipartisan, bicameral piece of legislation to fix American health care 
in more than 13 years.
  Colleagues are going home every time there is a recess and talking 
with folks at home about health care. People are saying we know the 
system is broken and it is not enough to try to just take one small 
part. We really need to step back and make changes, for example, in the 
employer-based system which is hurting the competitiveness of so many 
of our companies. We need to have some health care rather than sick 
care because the system is biased against prevention. We clearly need 
to help those who are falling between the cracks.
  Above all, we have to contain the costs. The costs are rising, 
according to PricewaterhouseCoopers, at far in excess of inflation, 
estimated to be about 12 percent this year. There is no way that is 
sustainable. It is not sustainable when we look at today's population 
trends and costs and the disadvantages our employers face.
  I was very pleased last week that not only was the Senate Finance 
Committee able to pass the CHIP legislation on a 17-to-4 basis through 
the hard work of our bipartisan leadership, but I was impressed because 
so many Senators on both sides of the aisle said they want to go 
further and to fix a broken health care system. To do that, we are 
going to have to work in a bipartisan way. We are interested in working 
with the Bush administration on that issue.
  I and others have said we can have differences of opinion with 
respect to how we straighten out this mess of a Tax Code as it relates 
to health care, but by and large, the administration is onto the key 
issue. To do this, we are going to have to recognize, first, that 
America cannot afford to wait any longer to fix health care. It is not 
enough to say let's just deal with it after the next election. That is 
not enough for people who are hurting in Virginia and Oregon and 
Wyoming. They want to see action in this session. That is what they 
give us an election certificate to do, to act on big issues and not 
just put them off for another 2 or 3 years.
  So let us work together, Democrats and Republicans, in this body with 
the administration to pass the children's health program and then to 
continue that spirit of bipartisanship and fix American health care in 
this Congress.
  I yield the floor. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. KENNEDY. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. KENNEDY. Mr. President, we have made very good progress during 
the morning and early afternoon on the

[[Page 19982]]

reauthorization of the Higher Education Act. We have a pretty good idea 
now of the remaining amendments. We are getting in touch with our 
colleagues who intend to offer those amendments. I expect we will have 
votes, as the leader indicated, in the early evening, and this probably 
will necessitate that we will have a few votes in the morning tomorrow. 
But we will wind up this higher education reauthorization bill, which 
is really the good news.
  Mr. President, how much time remains?
  The PRESIDING OFFICER. The Senator has 8\1/2\ minutes remaining on 
the bill.
  Mr. KENNEDY. Mr. President, I ask the Chair to advise when I have 1 
minute left.
  Finally, Mr. President, I want to review again exactly where we are 
on the two pieces of legislation, one of which we passed on Thursday 
night, which is the historic increase in the need-based grant aid, the 
largest increase in grant aid since the GI bill after World War II. We 
have also assisted in the management of these loans, the indebtedness, 
by offering loan forgiveness and by putting a limit on loan payments at 
15 percent of the discretionary income. Discretionary income also takes 
into consideration if there are children and, obviously, that reduces 
the discretionary income.
  We have the loan forgiveness for borrowers who work in the public 
service jobs. If you become a teacher and work with special needs 
children, or work with the disabled or the elderly, and you do that 
over a 10-year period, you will not pay more than 15 percent and 
qualify for the loan forgiveness.
  The bill also protects working students, so that if they work hard 
and gain some money to be able to buy some books, that they are not 
going to break through these caps, need-based caps, and they are going 
to be able to buy the books and use those earnings. This is a realistic 
and important aspect of the legislation.
  So this is assistance to the neediest students, assistance for those 
students from working families with middle income, and assistance for 
idealistic students who want to work in public service. All of that is 
going to be possible under this legislation.
  Under the reauthorization, the other part which we are now on the 
floor of the Senate debating, we are also making sure that the student 
loan system is going to meet the ethical requirements and is going to 
ensure that the best interest of the students and the loan system is 
going to be protected.
  We have had too many stories of inappropriate kinds of actions in the 
development of the loan system, which makes it more difficult for the 
students and, obviously, compromises the colleges and universities. So 
we have addressed that issue in this part of the program.
  We are publicizing the cost information so that parents will 
understand and get real information as to what the cost is for the 
schools. We are going to also publicize what the States are providing. 
If they cut back, as they have in my own State, which has meant the 
fees have gone up, parents will know who is responsible. We hope this 
will make a difference in terms of the total cost of education.
  The application itself, what they call the FAFSA, we have simplified 
that so it will no longer be a discouraging document. It will be one 
that will be easier to read and be easier to utilize, particularly for 
those students who don't have the kind of support systems that help 
them fill out those forms.
  Finally, we have helped in the areas of the GEAR UP and TRIO programs 
to help improve preparation for higher education. For one reason or 
another, some students need a helping hand to continue their education 
and succeed in school. That has been true for the TRIO and GEAR UP 
programs and other programs that work with children who come from 
economically disadvantaged backgrounds but are talented and hard 
working students. This helps provide an outreach for those students.
  Lastly, we have the programs to support higher quality teacher 
preparation. We understand at the end of the day the teacher in the 
classroom is the one who makes all the difference. Each and every one 
of us in this Chamber can all remember our favorite teachers, the one 
who inspired us, helped us, coached us, and really encouraged us to 
move ahead and grasp the opportunities of furthering our education.
  Mr. President, this is a very meaningful piece of legislation. It 
represents the best judgment of Republicans and Democrats alike. We are 
enormously indebted to our Republican and Democratic colleagues and all 
of the staffs who have worked very long and hard on this legislation.
  We are going to have more to say on these particular amendments, but 
I think it is useful to just give a summary of what this legislation is 
all about. We have added to this legislation over the course of the day 
in some very useful and meaningful ways. So we are going to look 
forward to getting a good vote on the final passage.
  Mr. President, I believe my time is up.
  The PRESIDING OFFICER. The Senator's time has expired.


                           Amendment No. 2375

  Mr. ENZI. Mr. President, I send an amendment to the desk on behalf of 
Senator Burr.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Wyoming [Mr. Enzi], for Mr. Burr, proposes 
     an amendment numbered 2375.

  Mr. ENZI. Mr. President, I ask unanimous consent that further reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

  (Purpose: To amend the Higher Education Act of 1965 with respect to 
                          teacher development)

       After section 205 of the Higher Education Act of 1965 (as 
     amended by section 201 of the Higher Education Amendments of 
     2007), insert the following:

     ``SEC. 205A. TEACHER DEVELOPMENT.

       ``(a) Annual Goals.--As a condition of receiving assistance 
     under title IV, each institution of higher education that 
     conducts a traditional teacher preparation program or 
     alternative routes to State certification or licensure 
     program and that enrolls students receiving Federal 
     assistance under this Act shall set annual quantifiable goals 
     for--
       ``(1) increasing the number of prospective teachers trained 
     in teacher shortage areas designated by the Secretary, 
     including mathematics, science, special education, and 
     instruction of limited English proficient students; and
       ``(2) more closely linking the training provided by the 
     institution with the needs of schools and the instructional 
     decisions new teachers face in the classroom.
       ``(b) Assurance.--As a condition of receiving assistance 
     under title IV, each institution described in subsection (a) 
     shall provide an assurance to the Secretary that--
       ``(1) training provided to prospective teachers responds to 
     the identified needs of the local educational agencies or 
     States where the institution's graduates are likely to teach, 
     based on past hiring and recruitment trends;
       ``(2) prospective special education teachers receive 
     coursework in core academic subjects and receive training in 
     providing instruction in core academic subjects;
       ``(3) regular education teachers receive training in 
     providing instruction to diverse populations, including 
     children with disabilities, limited English proficient 
     students, and children from low-income families; and
       ``(4) prospective teachers receive training on how to 
     effectively teach in urban and rural schools.
       ``(c) Public Reporting.--As part of the annual report card 
     required under section 205(a)(1), an institution of higher 
     education described in subsection (a) shall publicly report 
     whether the goals established under such subsection have been 
     met.

  Mr. ENZI. Mr. President, this is a teacher amendment. Teachers are 
the most important factor to a child's academic achievement. Student 
achievement will not improve unless we can ensure that all children 
have access to qualified teachers. Many of our schools, however, are 
lacking in a steady and ample supply of qualified teachers.
  The current state of affairs for high schools and middle schools is 
especially troubling. Nationally, 24 percent of all high school classes 
are taught by teachers lacking in either a college major or minor in 
their field of teaching. However, for students in high-poverty schools, 
this number jumps to 34

[[Page 19983]]

percent in comparison to 19 percent in low-poverty schools.
  Nearly 50 percent of math classes in high-poverty high schools are 
taught by teachers with neither a major nor minor in math or a math-
related field, such as engineering, physics, or math education.
  Schools and districts for too long have been forced to depend on 
teacher pipelines that are not producing sufficient numbers of 
qualified individuals to teach in high-need areas such as math, 
science, foreign language, special education, and English language 
proficiency, and in hard-to-staff schools both in urban and rural 
areas.
  The Bipartisan Commission on No Child Left Behind, led by Tommy 
Thompson and Roy Barnes, though concentrating primarily on the 
Elementary and Secondary Education Act, recognized the critical 
connection between higher education--colleges of education--and K-12 
education, for improving the supply of qualified teachers.
  As one of its recommendations, the No Child Left Behind Commission 
recommended amending title II of the Higher Education Act to require 
institutions of higher education that prepare prospective teachers to 
set annual goals for increasing the number of prospective teachers in 
shortage areas, such as math, science, special education, and 
instruction of limited English-proficient students, and for more 
closely linking the instruction colleges of education provide 
prospective teachers with the needs new teachers will face in the 
classroom.
  Additionally, the Commission recommended having institutions of 
higher education provide an assurance to the Secretary that, No. 1, 
teacher training responds to the needs of the school districts and 
States in which new teachers graduate; No. 2, regular education 
teachers are provided with training in teaching diverse populations, 
including special education students, limited English-proficient 
students, and low-income students; No. 3, prospective teachers receive 
training to teach in urban and rural schools; and, No. 4, special 
education teachers receive training on instruction in content areas.
  Senator Burr's amendment puts into statute these important Higher 
Education Act recommendations made by the bipartisan, nonpartisan No 
Child Left Behind Commission. Senator Burr, on whose behalf I offer 
this amendment, and I share the belief we must forge stronger 
connections between higher education and our K-12 schools and that 
higher education has a responsibility to ensure that the pipeline of 
prospective teachers grows and responds to the needs of American 
students and schools.
  All our children, regardless of background or neighborhood, must have 
access to high-quality teachers. So I am going to urge everyone to 
support this important amendment, which is offered by Senator Burr. 
This amendment requires teacher training programs to report to the 
Secretary of Education on how they are responsive to the needs of their 
graduates once they reach the classroom.
  I am particularly pleased this amendment recognizes the special 
skills new teachers need when teaching in rural areas. Today's teachers 
need training to meet the needs for diverse student populations--
ranging from students with disabilities to English language learners to 
gifted and talented students.
  Finally, this amendment does not impose additional mandates on 
institutions with teacher training programs. It simply requires them to 
report on how they are meeting the needs of prospective teachers in 
local school districts, and I am sure they are working on that on a 
daily basis to figure out how they can meet the needs in the best way 
possible. Sharing that with us will help us in our work. So I ask that 
we adopt the Burr amendment.
  Mr. KENNEDY. Mr. President, I thank the good Senator from North 
Carolina for offering this amendment. I had the opportunity to travel 
to North Carolina and to visit with their education department about 
their innovative and creative ways of trying to bring in highly 
qualified teachers in a lot of underserved areas. They have done a very 
good job.
  This amendment doesn't surprise me. It is extremely worthwhile and 
reminds us of what the current situation is. If you have math students 
in high-poverty schools, they are more likely to be taught by out-of-
field teachers. That means that over 33 percent of the math classes in 
high-poverty schools are being taught by a teacher without a degree in 
their field compared to less than 18 percent in low-poverty schools.
  So as we have discussed during this entire debate, both last week and 
this week, this is a good example of our efforts to reduce the 
inequities in education, particularly when we are talking about the 
needs of developing skills in math, in science, engineering, and 
technology. This is a pretty good indication, the fact that if children 
are going to high-poverty schools, this is the chance they have to 
learn from a well-qualified teacher. It isn't always the case, but 
these statistics demonstrate the point the amendment is trying to make.
  This is in science. If you take science students in high-poverty 
schools, they are more likely to be taught by out-of-field teachers. It 
is 56 percent in the high-poverty area, and only 22 percent in the low-
poverty areas. This is repeated in other subjects as well.
  Among other things, what the amendment is trying to do is hold 
institutions of higher education accountable for the quality and 
progress of teacher preparation and alternative certification programs. 
We have serious need for math and science teachers, especially in low-
income and high-need schools. We ought to be encouraging our teaching 
institutions to help produce those teachers. That is really a very 
substantial part of what this amendment does. It helps high-need 
schools recruit and retain high-quality teachers so we give 
encouragement to schools to produce these teachers, and then help the 
high-needs schools to recruit and retain the highly qualified teachers 
and also help promote innovative models such as induction and teaching 
residency programs.
  We have seen that some of these programs have been enormously 
successful in retaining teachers in high-poverty areas. These programs 
also encourage more accountability in teacher preparation. That is very 
consistent with what we are trying to do in this legislation.
  Senator Burr has spoken of this issue. The Senator from Wyoming, you 
will remember, spoke about this during our discussions in the 
committee. We indicated a desire to work with him. This legislation is 
right on target with what we are attempting to do, recognizing what I 
said previously, and that is the key to education is the well-trained 
teacher. This is going to be helpful to make sure we are going to have 
a well-trained teacher in those areas of shortage. Clearly, math, 
science and engineering are very important, critical areas. As are 
teaching students with disabilities and English language learners. The 
amendment will help make this stronger legislation as a result of its 
acceptance.
  I am more than glad to urge our colleagues to accept it. I will 
follow the lead of the Senator from Wyoming.
  Mr. ENZI. I thank the Senator from Massachusetts for his comments. It 
is something he and I have talked about extensively. We do know 
teachers are the key to education.
  I am not aware of any disagreement on either side. I am ready to wrap 
up the debate on it.
  Mr. KENNEDY. We are prepared to accept the amendment.
  Mr. ENZI. We ask the time left on the amendment be yielded to the 
bill itself.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ENZI. I thank the Chair.
  The PRESIDING OFFICER. The question is on agreeing to the amendment.
  The amendment (No. 2375) was agreed to.
  Mr. KENNEDY. Mr. President, I move to reconsider the vote.
  Mr. ENZI. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.

[[Page 19984]]


  Mr. KENNEDY. Mr. President, the Senator from Ohio, I understand, is 
on his way. We expect him shortly. He has an important amendment.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. BROWN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           Amendment No. 2376

  Mr. BROWN. Mr. President, I send an amendment to the desk and ask for 
its immediate consideration.
  The PRESIDING OFFICER. Without objection, the pending amendment is 
set aside. The clerk will report the amendment.
  The bill clerk read as follows:

       The Senator from Ohio [Mr. Brown] proposes an amendment 
     numbered 2376.

  Mr. BROWN. Mr. President, I ask unanimous consent that the reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

     (Purpose: To provide for a Federal supplemental loan program)

       At the end of title IV of the bill, add the following:

               PART H--FEDERAL SUPPLEMENTAL LOAN PROGRAM

     SEC. 499. FEDERAL SUPPLEMENTAL LOAN PROGRAM.

       Title IV (20 U.S.C. 1070 et seq.) is further amended by 
     adding at the end the following:

     ``SEC. 499B. FEDERAL SUPPLEMENTAL LOAN PROGRAM.

       ``(a) Program Authorized.--The Secretary shall carry out a 
     Federal Supplemental Loan Program in accordance with this 
     section.
       ``(b) Eligible Individuals.--An individual shall be 
     eligible to receive a loan under this section if such 
     individual attends an institution of higher education on a 
     full-time basis as an undergraduate or graduate student.
       ``(c) Fixed Interest Rate Loans and Variable Interest Rate 
     Loans.--
       ``(1) In general.--Beginning with academic year 2008-2009, 
     the Secretary shall make fixed interest rate loans and 
     variable interest rate loans to eligible individuals under 
     this section to enable such individuals to pursue their 
     courses of study at institutions of higher education on a 
     full-time basis.
       ``(2) Fixed interest rate loans.--With respect to a fixed 
     interest rate loan made under this section, the applicable 
     rate of interest on the principal balance of the loan shall 
     be set by the Secretary at the lowest rate for the borrower 
     that will result in no net cost to the Federal Government 
     over the life of the loan.
       ``(3) Variable interest rate loans.--With respect to a 
     variable interest rate loan made under this section, the 
     applicable rate of interest shall, during any 12-month period 
     beginning on July 1 and ending on June 30, be determined on 
     the preceding June 1 and be equal to--
       ``(A) the bond equivalent rate of 91-day Treasury bills 
     auctioned at the final auction held prior to such June 1; 
     plus
       ``(B) a margin determined on an annual basis by the 
     Secretary to result in the lowest rate for the borrower that 
     will result in no net cost to the Federal Government over the 
     life of the loan.
       ``(d) Maximum Loan Amount.--
       ``(1) In general.--The Secretary shall make a loan under 
     this section in any amount up to the maximum amount described 
     in paragraph (2).
       ``(2) Maximum amount.--For an eligible individual, the 
     maximum amount shall be calculated by subtracting from the 
     estimated cost of attendance for such individual to attend 
     the institution of higher education, any amount of financial 
     aid awarded to the eligible individual and any loan amount 
     for which the individual is eligible, but does not receive 
     such amount, pursuant to the subsidized loan program 
     established under section 428 and the unsubsidized loan 
     program established under section 428H. For the purposes of 
     this section, an institution of higher education may reduce 
     its cost of attendance.
       ``(e) Cosigners.--The Secretary shall offer to eligible 
     individuals both fixed interest rate loans and variable 
     interest rate loans under this section with the option of 
     having a cosigner or not having a cosigner.
       ``(f) Repayment.--The Secretary shall offer a borrower of a 
     loan made under this section the same repayment plans the 
     Secretary offers under section 455(d) for Federal Direct 
     Loans.
       ``(g) Consolidation.--A borrower of a loan made under this 
     section may consolidate such loan with Federal Direct Loans 
     made under part D.
       ``(h) Disclosures and Cooling Off Period.--
       ``(1) Disclosures.--The Secretary shall provide disclosures 
     to each borrower of a loan made under this section that are 
     not less than as protective as the disclosures required under 
     the Truth in Lending Act (15 U.S.C. 1601 et seq.), including 
     providing a description of the terms, fees, and annual 
     percentage rate with respect to the loan before signing the 
     promissory note.
       ``(2) Cooling off period.--With respect to loans made under 
     this section, the Secretary shall provide a cooling off 
     period for the borrower of not less than 10 business days 
     during which an individual may rescind consent to borrow 
     funds pursuant to this section.
       ``(i) Discretion to Alter.--The Secretary may design or 
     alter the loan program under this section with features 
     similar to those offered by private lenders as part of loans 
     financing postsecondary education.''.

  Mr. BROWN. Mr. President, a couple of months ago a distraught mother 
from Cincinnati wrote me about the private loan her daughter had taken 
to go to college. Her daughter had borrowed $21,000, was facing a bill 
for over $100,000 as a result. She sent me the disclosure sheet on the 
loan represented in this chart because she could not believe what she 
saw.
  She took out a loan for $21,000 for 2 years of school. That loan 
grew, at an 18 percent interest rate, to almost $35,000 because there 
was a deferral on payback of the loan during her 2 years in school.
  So she ended up owing $67,000 for the life of the loan. That is why 
she ended up paying $102,000 because of this incredibly high interest 
rate for student loan, 18\1/4\ percent.
  I have shown this statement to a loan officer at a bank and also to 
my attorney. They both expressed to me they had never seen anything 
such as this and there must be a mistake. Unfortunately, the only 
mistake is Congress has failed to act to restrain the costs of these 
loans, which as we have seen, can carry interest rates sometimes in 
excess of 18 percent.
  It is not an isolated problem. Private loans have been growing at an 
annual pace of some 27 percent, meaning that because tuition continues 
to grow at a rapid rate, and the Federal Government has not met, 
through the Direct Student Loan Program or the Guaranteed Student Loan 
Program, has not met that increase, the amount that students need has 
grown at such a rapid rate that private lenders have come in charging 
interest rates similar to this, 18 percent, 16 percent, 17 percent, 
whatever.
  The cost of college has climbed so much that we have seen this kind 
of growth. In Ohio, the median house income increased 3 percent between 
2000 and 2006. Tuition went up 53 percent at 4-year public schools, 28 
percent at 4-year private schools. Tuition went up 28 percent for some, 
53 percent for others. Yet the average wage in our State went up only 3 
percent.
  The Federal loan limits have barely budged over the past several 
decades. In 1972, a freshman could borrow $2,500 in Federal loans. Last 
year, that number barely moved to $2,600, even though, in real terms, 
the limit on borrowing would amount to $12,000, if it kept pace with 
inflation. To be fair, the law changed this month. A freshman can 
borrow $3,500 for school. But even though the limits in the first 2 
years have been increased somewhat, the overall cap on borrowing 
remains the same, $23,000 for a dependent undergraduate. This bill does 
nothing to change the cap because the HELP Committee decided, correctly 
in my view, the bulk of savings we could achieve should be plowed back 
into Pell grants. I applaud Chairman Kennedy for doing that.
  With the price tag for 4 years of college at $120,000 for private 
schools, $50,000 for public schools, there is obviously a big gap for 
many students. That gap gets filled in many ways: savings, work, 
grants, PLUS Loans, credit cards, you name it. But for more students, 
private loans are playing a bigger role.
  According to testimony before the Banking Committee last month, 
Sallie Mae made $7 billion in private loans and $15 billion in Federal 
loans. In other words, one out of three college student loan dollars 
originated by the biggest student lender in the country is a private 
loan subject to much higher rates.
  As this chart indicates, the private loan program may well outstrip 
the Federal program over the next decade. What we have done on this 
chart is use

[[Page 19985]]

the growth rates of the two programs over the past several years to 
predict how large they will grow if current trends continue. The darker 
reddish-purple there is the unregulated private bank loans that 
students are getting, growing more than 20 percent a year. You can see 
how within 7 or 8 years, they will overtake student loans.
  More and more students are forced to go through private banks for 
private loans at higher and higher interest rates every year. Think 
about these numbers: A 28-percent increase in tuition over the last 6 
years for private 4-year institutions, 53 percent for public 4-year 
institutions. Yet the average wage has only gone up 3 percent.
  Congress very often legislates through the rear-view mirror. We wait 
until a problem becomes close to unmanageable before we feel compelled 
to act. Today we can take a different approach. We can act to address a 
problem before it becomes widespread. This amendment I am offering will 
create an alternative for the fastest growing segment of the student 
loan industry, private loans.
  My amendment creates a supplemental loan program that would be run by 
the Federal Government. It would provide one more option for students 
to finance their education. Over the years, my Republican colleagues 
have defended the private guaranteed student loan program by arguing 
there should be competition between the guaranteed and the Direct Loan 
Program and that the competition made both better. Right now there is 
no competition for these private loans with the results that students 
have been charged in excess of 18 percent.
  Mr. KENNEDY. Would the Senator yield?
  Mr. BROWN. I will yield.
  Mr. KENNEDY. Mr. President, how much time do we have?
  The PRESIDING OFFICER. There is 10 minutes remaining in favor of the 
amendment.
  Mr. KENNEDY. There is 15 minutes divided between Senator Enzi and 
myself?
  The PRESIDING OFFICER. The Senator is correct.
  Mr. KENNEDY. I would be glad to, if the Senator would yield on my 
time.
  Is it not true that there is sort of three major components of paying 
for the cost for higher education? We have one aspect of it, which is 
the student loan program, which is the Federal student loan program. 
Included in that program is the authorization program, that we are 
going to deal with this issue.
  Then we have the private loan programs which the Senator from Ohio is 
addressing. So as we are on the floor of the Senate, and middle-income 
families are watching us, we say we want to do something about the cost 
of tuition, certainly we make a downpayment on that in the 
reconciliation bill, where we have taken some $17 billion out of the 
lenders in order to provide more Federal grant aid to needy students. 
We have helped the neediest students.
  But the Senator from Ohio has put his finger on what is happening at 
the other end; that is, the dramatic increase in the students borrowing 
at these exorbitant rates of 18 percent.
  Does the Senator share my belief that we will never get a handle on 
the cost of tuition for colleges and universities until we get a handle 
on that program as well?
  Mr. BROWN. I think that is exactly right, what Senator Kennedy said. 
Because of the efforts of Senator Enzi and Senator Kennedy, in a 
bipartisan effort in this body last week, to move money that has been 
subsidizing those private companies into Pell grants and into better 
rates and better payback periods and all of that for students, we have 
gone a big part of the way.
  But on this chart, as Senator Kennedy suggests, the dollars students 
will need continue to skyrocket, and the only place they can go is 
these private banks.
  Mr. ENZI. Parliamentary inquiry: It is my understanding of the time 
that it was equally divided by the pro and the con on the amendment 
rather than----
  The PRESIDING OFFICER. That is correct.
  Mr. ENZI. Rather than half to the presenter.
  The PRESIDING OFFICER. The Senator is correct.
  Mr. KENNEDY. Let me ask the Senator from Ohio, if you look at the 
left part of that chart, that is 1996; is that correct?
  Mr. BROWN. This is actually 2005.
  Mr. KENNEDY. So what you are pointing out is what has happened in the 
last 6 years; am I not correct?
  Mr. BROWN. Well, we also had a chart earlier that showed that 
increase of 20-plus percent, up until now, in real dollars. If the 
percentage increase continues, and there is no reason it would not, it 
will grow similar to this. But we have had several years of this 
already.
  Mr. KENNEDY. Well, the point I am making is this is a relatively new 
phenomenon that has taken place, correct?
  Mr. BROWN. Correct.
  Mr. KENNEDY. As we try to get a handle on trying to provide need-
based assistance, we've seen a cutback in the proportion of grants 
compared to loans in Federal aid. We've seen the huge increase in 
Federal student loan debt--more and more students must borrow to afford 
a college education. At the same time we are seeing the explosion of 
private student loans, which often carry interest rates as high as 18 
percent, which the Senator has talked about.
  Does the Senator not agree with me, if we are really serious about 
dealing with the cost of tuition for students, we ought to deal with 
all of those components? As I understand, the Senator from Ohio is 
doing that with his amendment, to make sure we are going to, as a 
result of his amendment, help the neediest students in terms of Pell 
grants, and we are going to get help managing student loan debt by 
offering loan forgiveness to those in public service and by capping 
monthly loan repayments. We are using some $17 billion that we take 
from the lenders, and we are going to make sure that students will get 
the best possible loan--even if it's a private loan.
  Mr. BROWN. That is correct. We are not regulating the banks. We are 
simply setting up a program so that the Government will break even. It 
will not cost taxpayer dollars. We are setting up a program to compete 
directly with private lenders, which we are certain, as my Republican 
friends have said, with the direct student loan program, that 
competition will make both operate better.
  I will briefly summarize the amendment and then reserve our time.
  The amendment requires the Secretary of Education to offer two types 
of loans, a fixed rate and a variable. Each type of loan would be 
offered for borrowers with or without cosigners. The Secretary would 
then have the discretion of designing the program to mirror other 
features offered by private loans such as delayed payment until after 
graduation or deferment for certain hardships. This amendment will 
clearly stop situations like this one from happening to a student, 
where a student goes in with a $21,000 loan and has to pay $500 monthly 
for 179 times and ends up paying $102,000 for a $21,000 student loan. 
We will see a competitive situation which will save those students 
dramatic amounts of money, working with what Senator Kennedy and 
Senator Enzi did last week on debt forgiveness, on the Pell grants--all 
that will absolutely matter for students.
  Mr. KENNEDY. This is providing competition; am I correct?
  Mr. BROWN. Yes.
  Mr. KENNEDY. So this isn't just mandating. This is creating 
competition, if they want competition in this area; am I correct?
  Mr. BROWN. This creates a competitive situation similar to what we 
have had since 1939 but for students who have to borrow money beyond 
the $23,000 limit. It doesn't regulate the banks. It doesn't tell the 
banks what to do. It simply sets up a competitive situation from which 
all of us will gain.
  I reserve the remainder of my time.
  The PRESIDING OFFICER. The Senator from Wyoming.
  Mr. ENZI. Mr. President, I rise to oppose the amendment. There are 
some statements that I would like to clear up a little bit. I would not 
want anybody to think that this is increasing

[[Page 19986]]

competition. This is increasing Government price fixing. It is 
requiring the Secretary of Education to do the price fixing. She is the 
one who sets the interest rate, or he, as the case might be at the time 
it was put into effect. That is not the person with the expertise to 
know what kind of interest rate ought to be charged on anything.
  I also have objection because this amendment has neither been through 
the Education Committee nor the Banking Committee. This is something 
the Banking Committee would strongly believe should be in their 
jurisdiction. I am glad we are having the discussion because it is very 
important for people to hear that you can borrow money at 18 percent, 
$21,000, defer all payments for 2 years, and pay off the loan in equal 
installments after that and wind up paying $100,000. If you are buying 
a car at $21,000 and you have to pay 18 percent interest and you don't 
have to pay anything for the first 2 years, that car is going to cost 
$100,000.
  That comes under the subject of financial literacy. It is important 
for us to impress on young people today what the cost of interest 
means, what the cost of deferring interest means. There are people 
buying houses under that kind of a proposal right now. They are very 
surprised at how much they owe on their house. We are trying to do as 
much as we can in the bill on financial literacy. Part of that 
financial literacy would be to encourage the parents to have a home 
equity loan to provide for the student, and that way it is deductible 
on their income tax. There are a number of different ways of doing 
this, but I don't think having the Secretary of Education determine an 
interest rate would intentionally bring down the cost of interest. 
Hopefully, we can get banks to be responsible on the interest rates 
they charge. But when there is no Federal backing, no Federal guarantee 
on the loan, they are actually providing the loan at very high risk to 
a student with no collateral, which is why the interest rates come in 
at 18 percent. There are other ways to correct the problem other than 
putting this in the hands of the Secretary.
  We had some experience with this before. There was a tuition credit 
that was initiated in 1978 to solve a huge problem at that time. It was 
supposed to apply to both elementary and secondary education and higher 
education, but it was focused on tuition tax credits for parochial 
schools. Almost all of the public attention was on the higher education 
part of it. The Carter administration very quickly came up with a two-
part plan, automatic Pell eligibility for every family if their income 
was below $25,000, and automatic eligibility for a student loan to any 
student who wanted one regardless of family income. Of course, one of 
the things that Money magazine pointed out was that even a Rockefeller 
could get a loan at 9 percent. That is what the Government set the loan 
rate at, 9 percent.
  What is the problem with that? If we had a Secretary of Education 
right now, and they happened to set the loan rate at 9 percent, I am 
sure the press would say that was absolutely terrible. On the other 
hand, if it was a Democrat who set it at 9 percent, they would probably 
say it was great. But this was the case where the Government set the 
rate at 9 percent. What is the problem? It was a time when interest 
rates were climbing through the roof and were on their way to 21 
percent prime. So there was an incentive to borrow money at a fixed 9 
percent rate, which is what the student loan interest rate was, and 
that didn't have to be repaid until after college when interest rates 
were going through the roof.
  So students borrowed the money, put the funds in a money market, and 
paid it back as soon as the repayment began, having made a tidy profit 
on the float.
  Other students borrowed money and used it to finance cars and other 
things unrelated to college. In fact, parents were encouraged to borrow 
and do home improvements and other things because they could get this 9 
percent money from the Federal Government. The amount of money being 
borrowed jumped from $1.7 billion in 1977 and 1978 to $67.2 billion in 
1980-1981, an increase of 265 percent in 4 years. Federal costs 
associated with student loans grew from $480 million to $2.5 billion 
which was also growth of 420 percent.
  Under the Brown-Sanders amendment, a student attending an expensive 
private college could borrow the entire cost of attendance, as much as 
$45,000 a year, on highly favorable terms. Repayment would, indeed, 
start right away, but if families have college money in the bank, they 
can pay off the loan gradually and earn on the interest, as they do, 
the same as we had a problem with before.
  The amendment also will encourage students to have their children 
borrow money for college rather than finance it through the PLUS loans 
or other mechanisms that would put the burden on the adults. In some 
cases, of course, parents will have the student take out the loans and 
would repay it for them.
  I am suggesting this is something we haven't reviewed enough to do 
yet; that it would put some of the present loans in jeopardy. We have 
been very careful in both last week's bill and this week's to be sure 
that there was some competition between direct loans and the private 
loans. But those were reviewed over a period of time, looked at with 
some history, and this one doesn't have the history.
  I hope we will vote against it.
  I yield the floor and reserve the remainder of my time.
  The PRESIDING OFFICER. The Senator from Ohio.
  Mr. BROWN. How much time remains?
  The PRESIDING OFFICER. The Senator from Ohio has 3 minutes remaining. 
The Senator from Wyoming has 8\1/2\ minutes remaining.
  Mr. BROWN. Mr. President, I would prefer to close, if the Senator 
from Wyoming has any more time he would like to use.
  The PRESIDING OFFICER. The Senator from Wyoming has 8\1/2\ minutes 
remaining. Does he choose to use more time?
  Mr. ENZI. I will use some more of my time. I haven't used all of it 
yet today, and I probably will not on this one either.
  I do have a letter I ask unanimous consent to have printed in the 
Record. It is from the American Association of State Colleges and 
Universities, U.S. Public Interest Research Group, and the United 
States Student Association.

  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                    July 23, 2007.
       Dear Senator: On behalf of students and institutions of 
     higher education we urge you to oppose the Brown amendment to 
     create a new supplemental loan program and eliminate all 
     federal student loan limits. We share the desire to help 
     students avoid risky and expensive private loans to pay for 
     college. However, by eliminating all limits on federal 
     student loan borrowing, this amendment may allow states to 
     pass on more of the cost of college to students.
       Federal Stafford loan limits for undergraduate students are 
     currently set at $23,000 for dependent students and $46,000 
     for independent students. Students can borrow additional aid 
     through the Perkins loan program and parents are eligible to 
     borrow up to the cost of attendance through the PLUS loan 
     program. Independent students, and in certain circumstances 
     dependent students, are eligible to borrow PLUS loans when 
     their parents do not. Despite the availability of federal 
     student loans a growing number of borrowers are turning to 
     the private loan market to finance their education.
       The Brown amendment would create a new supplemental loan 
     program designed as an alternative to these more expensive 
     private loans. About 5% of undergraduate students take out 
     private loans to finance their education each year. However, 
     the Brown amendment would allow all students to borrow 
     federal loans up to the cost of attendance minus other 
     federal aid.
       By eliminating all federal loan limits, the Brown amendment 
     could have serious, negative unintended consequences on state 
     investment in higher education. Over the past decade states 
     all across the country have cut funding for higher education 
     or restrained funding increases when faced with tight 
     budgets. States have compensated by increasing the cost of 
     college to students. Making available such a massive source 
     of new funds, without any limitations, may have the 
     unintended consequence of facilitating tuition increases in 
     states across the country.
       We urge you to oppose the Brown amendment to S. 1642.

[[Page 19987]]

       For questions please contact Luke Swarthout at U.S. PIRG or 
     Brittny McCarthy.
           Sincerely,
       American Association of State Colleges and Universities 
     (AASCU).
       U.S. Public Interest Research Group (U.S. PIRG).
       United States Student Association (USSA).

  Mr. ENZI. A few of the highlights:

       Dear Senator: On behalf of students and institutions of 
     higher education we urge you to oppose the Brown amendment to 
     create a new supplemental loan program and eliminate all 
     federal student loan limits.
       By eliminating all federal loan limits, the Brown amendment 
     could have serious, negative unintended consequences on state 
     investment in higher education.

  I also have a letter from the Financial Services Roundtable. I ask 
unanimous consent that it be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                            The Financial Services Roundtable,

                                    Washington, DC, July 19, 2007.
     U.S. Senate,
     Washington, DC.
       Dear Senator: As the Senate considers S. 1642, the Higher 
     Education Amendment of 2007, the Roundtable is writing to 
     express our opposition to the amendment by Senator Sherrod 
     Brown. The Financial Services Roundtable would urge you to 
     oppose the Brown Amendment, which would ultimately be 
     detrimental to student borrowers.
       The Brown Amendment would create a new federal-run student 
     loan program, in addition to current programs that would 
     offer loans currently being made by private student lenders. 
     This new government system with the ability to borrow money 
     at government rates would essentially supplant lenders 
     offering private student loans. The policy implications of 
     such a program are broad and the unintended consequences are 
     numerous.
       The private market and competition most efficiently serve 
     consumers. There are many lenders in the private student loan 
     marketplace and competition among lenders benefits students. 
     S. 1642 supports competition in the private student loan 
     market, while the Brown Amendment eliminates competition.
       This expansive new government bureaucracy created by the 
     Brown Amendment would drive private lenders out of the 
     student loan marketplace. Students would essentially have no 
     alternative to the federal government for student loans. The 
     federal government is not able to respond to market demands 
     like the private market and having one lender on which 
     student must rely is potentially problematic.
       We urge you to oppose the Brown Amendment.
           Best regards,
                                                   Steve Bartlett,
                                                President and CEO.

  Mr. ENZI. I will mention, again, a couple of highlights. They, of 
course, express their opposition and point out that it would ``create a 
new federal-run student loan program, in addition to current programs 
that would offer loans currently be made by private student lenders. 
This new government system with the ability to borrow money at 
government rates would essentially supplant lenders offering private 
student loans. The policy implications of such a program are broad and 
the unintended consequences are numerous.''
  Once again, I reiterate that this hasn't been tested. It hasn't been 
vetted through the committees. Of course, when it goes through 
committee, that is an opportunity for a diverse group of people to put 
their opinions behind it, as well as to meet with stakeholders and get 
an outside opinion.
  I would ask that Members oppose the amendment.
  Does the Senator from New Hampshire wish to speak on this amendment.
  Mr. GREGG. I do.
  Mr. ENZI. I yield the remainder of my time to the Senator from New 
Hampshire.
  The PRESIDING OFFICER. The Senator from New Hampshire.
  Mr. GREGG. How much time remains?
  The PRESIDING OFFICER. The Senator is recognized for 6 minutes 24 
seconds.
  Mr. GREGG. How much time remains to the offeror of the amendment?
  The PRESIDING OFFICER. The Senator from Ohio has 3 minutes and wishes 
to sum up.
  Mr. GREGG. Mr. President, when we structured the arrangement between 
direct student lending and private lending back in the 1990s, when 
Senator Kennedy was chairman of the committee, there was considerable 
open dialog about the fact that we were going to set an even playing 
field where we would allow the marketplace, essentially the students 
and the schools, to decide who was going to win, who would be used more 
often, direct lending or the private market. That was the theory.
  The Senator from Massachusetts and the Senator from Indiana, at that 
time Mr. Coats, and I worked on this at great length. We worked out an 
arrangement where this was the way we would approach it. But ever since 
then, or at least in the last year, there has been an attempt to tilt 
the playing field significantly toward direct lending and to make the 
Government the lender of first resort and last resort for most 
students, even though in most instances that has been rejected both by 
the students and the education community.
  This amendment is just an extension of that effort and is arguably an 
extremely expensive extension because even though the scoring rules may 
reflect a zero scoring--and I am not sure it will--we know those rules 
don't adequately reflect the cost to the Government of having 
participated in these types of lending programs.
  What we are doing now under this amendment is saying not only do you 
have these base lending amounts that are available under direct 
lending, but you are going to be able to borrow up to the full cost of 
your education. So it dramatically skews the system to favor direct 
lending and especially to allow students and parents, as has been 
pointed out by the ranking member on the committee, to arbitrage that 
money and encourages high cost schools to become even more expensive.
  One of the things we have seen is that there appears to be a direct 
correlation between tuition going up at schools and federally supported 
lending and Federal grants being increased. So the students are not 
usually advantaged by this expansion of direct lending and, many times, 
grants. It is, rather, the schools that are advantaged, especially 
high-end schools which simply raise their tuition to absorb whatever 
new money is flowing in out of the Federal Treasury. It has become a 
fairly cynical game on the part of many academic institutions, but it 
is exactly what has happened.
  This amendment needs a hearing. It needs to be vetted very 
aggressively in committee, as the Senator from Wyoming, the ranking 
Republican, pointed out. It basically, in my humble opinion, right up 
front, undermines three of the basic principles we should be trying to 
resist occurring.
  The first principle is we not unduly tilt the playing field in favor 
of direct lending over private lending or private lending over direct 
lending. Last week's amendment, which I think took a significant amount 
of money out of the subsidy for private lending, was a good step in the 
direction of not allowing private lending to get an advantage. This 
amendment should not be passed because it gives direct lending an 
unfair advantage.
  Secondly, it should not create an atmosphere where students are 
pushed toward higher income schools, higher cost schools, and where 
parents and students are allowed to basically game the system through 
arbitraging funds--borrowing at one rate, lending at another rate--
assuming they had some other sources of revenue.
  Thirdly, it should not encourage this process which is occurring out 
there of giving significant resources without any discipline to higher 
education facilities so they can then raise their tuition, at the 
expense of students who do not have these types of resources to pay 
these loans or who do not qualify for these loans and end up with 
education becoming more expensive simply because the higher education 
institutions see there is easy money out there to capture, and they do 
not have to be disciplined in managing their education systems.
  So there are a lot of issues this raises--a lot of issues. Now, I 
know the basic goal of some on the other side is to move the whole 
thing to direct lending. Unfortunately, that has become the cause 
celebre around here, and the

[[Page 19988]]

purpose. Much like universal health care, they would like to have 
universal Federal lending policies around here. But the private sector 
plays a significant and constructive role in making college affordable 
for American students, and has.
  The original agreement, which was reached in the 1990s to make the 
playing field balanced and fair and to keep it balanced and fair, is 
the way we should proceed. We should not be putting in place, out of 
the clear blue sky, a brand-new major direct lending program which will 
undermine some of the major tenets and efforts we have undertaken in 
higher education lending.
  Mr. President, I reserve the remainder of the time for the ranking 
member.
  Mr. BROWN. Mr. President, how much time do the opponents of the 
amendment have?
  The PRESIDING OFFICER. Those opposed have 49 seconds.
  Mr. BROWN. I thank the Chair. I will close.
  We know several things. We, first of all, know that my amendment sets 
up a competition. It does not set up, it does not run the system. It 
simply sets up a competition. It does not tilt the playing field. It 
makes the playing field even so interest rates will not continue to be 
at a usurious rate of 16 and 17 and 18 percent.
  We know the Direct Loan Program works. We have seen the Government 
involved in the Direct Loan Program, as in Pell, as in Stafford. The 
Government, in fact, has negative subsidy rates of 7 percent and 4 
percent. In other words, the Government has done these so efficiently 
that the Government either breaks even or actually makes money.
  We know my amendment does not take effect until students have 
exhausted up to $23,000. There are other opportunities to get financing 
for college. It only goes there. It is not a new program that simply 
will take people in because it is tilted, as my friend, the Senator 
from New Hampshire, says. We also know if we do nothing, as USA Today 
said: There is just one problem. The efforts short of this amendment 
would do little to rein in the fastest growing area of the market--
loans that are not federally backed whose rates can generally rise 
without limit. Bills in Congress would not affect rates on these loans, 
also often called private loans, until this amendment.
  The ranking member said he hopes the banks charge lower interest 
rates. The fact is--as the Senator from New Hampshire talked about 
gaming the system--the banks are gaming the system. That is why this 
woman from Cincinnati had to--on a loan of $21,000--pay $102,000 back, 
at 18 percent interest.
  We just want some competition. I do not want to see the easy money--
the Senator from New Hampshire talks about the easy money. It is easy 
money for the banks. It is huge profits for the banks.
  This is really a decision that comes down to, are you going to 
support students in giving them the opportunity to go to school? This 
is not buying a car. This is not making car loans. This is providing an 
opportunity for a lot of students. It is their first chance to go to 
college.
  My wife went to college, enrolled at Kent State University 30 years 
ago. She was the first one in her family to go to college. She probably 
could not do that today because the loans and the grants are not 
available the way they were 30 years ago. She probably would have 
either not been able to go to school because she could not have put the 
financial package together or she would have seen a situation where she 
would have been burdened with such huge loans, huge debt when she 
graduated.
  There is the choice, are you voting for students in this country--
giving opportunity to middle-class students, opportunity to working 
families--or are you going to vote to support the banks so they can 
continue to charge these kinds of 15, 16, 17, 18 percent interest 
rates?
  Mr. President, I ask for support of the Brown amendment.
  I yield back my time.
  The PRESIDING OFFICER. The Senator from Wyoming.
  Mr. ENZI. Mr. President, I ask unanimous consent that a letter from 
the Consumer Bankers Association be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 Consumer Bankers Association,

                                     Arlington, VA, July 23, 2007.
       Dear Senator: I am writing to let you know of the strong 
     opposition of the Consumer Bankers Association to an 
     amendment that will be offered by Senator Brown to the S. 
     1624, the Higher Education Act Amendments of 2007. The Brown 
     Amendment would create a new ``Federal Supplemental Loan 
     Program.''
       The effects of this program are hard to ascertain as it is 
     being proposed with little input from anyone involved with or 
     affected by student financial assistance programs. There have 
     been no hearings or other public discussion of this massive 
     proposal. We understand that student and school groups oppose 
     the legislation, and we urge you to read letters to that 
     effect from their representatives.
       The loan program envisioned by this legislation would 
     enlarge the government by tens of billions of dollars a year 
     and represents an attempt to fully nationalize student 
     lending, putting all responsibility for making and collecting 
     tens of billions of dollars in new loans every year into the 
     hands of the Department of Education and its contractors.
       A private student lending system already exists; it is 
     competitive and serves the needs of millions of students 
     every year. The Brown Amendment is attempting to replace this 
     system with a government-only monopoly that will eliminate 
     students' and parents' choice of lender. This will only put a 
     stop to innovation and improvement while doing nothing about 
     the high cost of higher education.
       We urge you to oppose the Brown Amendment to S. 1624.
           Sincerely,
                                                        Joe Belew,
                                                        President.

  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, just for the benefit of Members, I think 
we will have a rollcall vote on the Senator's amendment. We will work 
out with the leadership the time for that vote. I think that is going 
to be the way we are going to proceed.
  I see the Senator from Illinois on the Senate floor now who has an 
amendment and, hopefully, we will be able to address that at the 
present time.
  The PRESIDING OFFICER. The Senator from Illinois.


                           Amendment No. 2377

  Mr. DURBIN. Mr. President, I rise today to offer the John R. Justice 
Prosecutors and Defenders Incentive Act as an amendment to the Higher 
Education Act of 2007.
  This amendment would create a targeted student loan repayment 
assistance program that will bolster the ranks of attorneys in the 
criminal justice system in America.
  I think the need for this amendment is clear. Prosecutor and public 
defender offices throughout the country are having serious difficulties 
recruiting and retaining qualified attorneys.
  In a recent survey, over a third of prosecutor offices nationwide 
reported problems with keeping attorneys on staff. Over 60 percent of 
prosecutor offices that serve populations of 250,000 or more reported 
serious problems with the retention of attorneys.
  The story is the same for public defender offices. Another recent 
survey found that over 60 percent of State and local public defender 
offices reported difficulty in attorney recruitment and retention.
  When prosecutor and defender offices cannot attract new lawyers or 
keep experienced ones, their ability to protect the public is 
compromised. Caseloads become unmanageable, cases can be delayed or 
mishandled, crimes may go unprosecuted, and innocent defendants may sit 
in jail.
  Why is it that prosecutor and defender offices are struggling to keep 
attorneys on staff? I will tell you one major reason: student loan 
debt.
  Over 80 percent of law students take out loans to finance their legal 
education. The average educational debt for law school graduates in the 
class of 2005 was almost $79,000 for private school graduates, and 
$51,000 for public school graduates. Two-thirds of law students also 
carry additional debt from their undergraduate experience.

[[Page 19989]]

  In light of this, it is not surprising that two-thirds of law 
students in a recent national survey stated that student loan debt 
prevented them from even considering a public interest or Government 
job--two-thirds of law school graduates. Of those dedicated law 
graduates who initially accept criminal justice jobs, many cannot stay. 
They just cannot afford to do so with the student loans they face.
  The higher education reconciliation bill we passed last week does 
much to address student loan debt in general for those who have already 
been in public service for 10 years. There is student loan forgiveness. 
There is a cap on how much a graduate would have to repay for a period 
of time, and at the end of 10 years there is student loan forgiveness.
  But, unfortunately, it does not go far enough to address the urgent 
need to help our criminal justice system recruit and retain qualified 
attorneys. We need a special solution to provide immediate assistance.
  My amendment, the John R. Justice Prosecutors and Defenders Incentive 
Act, is a tailored solution. My amendment would establish, within the 
Department of Justice, a program of student loan repayment assistance 
for borrowers who agree to remain employed for at least 3 years as 
State or local criminal prosecutors or as State, local, or Federal 
public defenders.
  I should point out that Federal prosecutors are already eligible for 
loan relief through existing programs.
  Under my amendment, borrowers could enter into another agreement, 
after the 3-year minimum, for an additional period of service. 
Attorneys who participate in this program can receive student loan debt 
repayments of up to $10,000 annually, with a maximum over time of 
$60,000. Repayments would begin with the first year of service. But, 
remember, there is no repayment unless there is a pledge to work at 
least 3 years, and then an opportunity to come back for another 3 
years. So a commitment has to be made.
  The program gives priority in repayment benefits to attorneys who 
have the least ability to repay their loans. It ensures a fair 
allocation of benefits among prosecutors and defenders nationwide.
  If an attorney receives loan repayments under this program but does 
not complete the agreed-upon period of service, they have to pay back 
the money.
  The John R. Justice Act is modeled on existing loan repayment 
programs that cover Federal executive branch employees and the 
Department of Justice. They have been demonstrated to be a great 
success as an attorney recruitment and retention tool.
  Simply put, a targeted loan repayment assistance program such as this 
one would make criminal justice careers more feasible and more 
attractive to qualified attorneys.
  Let me say, this bill has passed out of the Senate Judiciary 
Committee twice. It has strong bipartisan support. It was brought to me 
by the prosecutors and the defenders in our criminal justice system. As 
we read in the news about case after case where those in prison have 
had their prosecutions reevaluated, we understand that competent 
counsel is the bedrock of a good system of criminal justice. We need 
the very best attorneys on both sides of the table--prosecuting those 
who have been accused of a crime and defending those who have that 
presumption of innocence in America.
  This bill has strong bipartisan support, with 38 Senate cosponsors. 
Companion legislation in the House passed by a vote of 341 to 73. It is 
supported by prosecutor, defender, and criminal justice organizations. 
I urge my colleagues to support their State and local prosecutors and 
defenders, and to support this legislation.
  It has, among others, the support of the National District Attorneys 
Association, the National Association of Prosecutor Coordinators, the 
National Legal Aid and Defender Association, the National Association 
of Criminal Defense Lawyers, the American Council of Chief Defenders, 
the National Juvenile Defender Center, the American Bar Association, 
the Conference of Chief Judges, and the American Law Deans Association.
  Mr. President, I would like to ask, is there an amendment currently 
pending on this legislation?
  The PRESIDING OFFICER. There is an amendment pending.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the amendment 
be set aside and I send this amendment to the desk. Then, of course, I 
would agree to step back in line and defer to the chairman and ranking 
member as to the sequence of amendments that will be called later. So I 
ask unanimous consent that be the order.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The legislative clerk read as follows:

       The Senator from Illinois [Mr. Durbin] proposes an 
     amendment numbered 2377.

  Mr. DURBIN. Mr. President, I ask unanimous consent that reading of 
the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

    (Purpose: To provide loan repayment for prosecutors and public 
                               defenders)

       At the end of title IX, add the following:

       PART E--OMNIBUS CRIME CONTROL AND SAFE STREETS ACT OF 1968

     SEC. 951. SHORT TITLE.

       This part may be cited as the ``John R. Justice Prosecutors 
     and Defenders Incentive Act of 2007''.

     SEC. 952. LOAN REPAYMENT FOR PROSECUTORS AND DEFENDERS.

       Title I of the Omnibus Crime Control and Safe Streets Act 
     of 1968 (42 U.S.C. 3711 et seq.) is amended by inserting 
     after part II (42 U.S.C. 3797cc et seq.) the following:

     ``PART JJ--LOAN REPAYMENT FOR PROSECUTORS AND PUBLIC DEFENDERS

     ``SEC. 3001. GRANT AUTHORIZATION.

       ``(a) Purpose.--The purpose of this section is to encourage 
     qualified individuals to enter and continue employment as 
     prosecutors and public defenders.
       ``(b) Definitions.--In this section:
       ``(1) Prosecutor.--The term `prosecutor' means a full-time 
     employee of a State or local agency who--
       ``(A) is continually licensed to practice law; and
       ``(B) prosecutes criminal or juvenile delinquency cases at 
     the State or local  level (including supervision, education, 
     or training of other persons prosecuting such cases).
       ``(2) Public defender.--The term `public defender' means an 
     attorney who--
       ``(A) is continually licensed to practice law; and
       ``(B) is--
       ``(i) a full-time employee of a State or local agency who 
     provides legal representation to indigent persons in criminal 
     or juvenile delinquency cases (including supervision, 
     education, or training of other persons providing such 
     representation);
       ``(ii) a full-time employee of a nonprofit organization 
     operating under a contract with a State or unit of local 
     government, who devotes substantially all of his or her full-
     time employment to providing legal representation to indigent 
     persons in criminal or juvenile delinquency cases, (including 
     supervision, education, or training of other persons 
     providing such representation); or
       ``(iii) employed as a full-time Federal defender attorney 
     in a defender organization established pursuant to subsection 
     (g) of section 3006A of title 18, United States Code, that 
     provides legal representation to indigent persons in criminal 
     or juvenile delinquency cases.
       ``(3) Student loan.--The term `student loan' means--
       ``(A) a loan made, insured, or guaranteed under part B of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 
     et seq.);
       ``(B) a loan made under part D or E of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1087a et seq. and 
     1087aa et seq.); and
       ``(C) a loan made under section 428C or 455(g) of the 
     Higher Education Act of 1965 (20 U.S.C. 1078-3 and 1087e(g)) 
     to the extent that such loan was used to repay a Federal 
     Direct Stafford Loan, a Federal Direct Unsubsidized Stafford 
     Loan, or a loan made under section 428 or 428H of such Act.
       ``(c) Program Authorized.--The Attorney General shall 
     establish a program by which the Department of Justice shall 
     assume the obligation to repay a student loan, by direct 
     payments on behalf of a borrower to the holder of such loan, 
     in accordance with subsection (d), for any borrower who--
       ``(1) is employed as a prosecutor or public defender; and
       ``(2) is not in default on a loan for which the borrower 
     seeks forgiveness.
       ``(d) Terms of Agreement.--
       ``(1) In general.--To be eligible to receive repayment 
     benefits under subsection (c), a borrower shall enter into a 
     written agreement that specifies that--
       ``(A) the borrower will remain employed as a prosecutor or 
     public defender for a required

[[Page 19990]]

     period of service of not less than 3 years, unless 
     involuntarily separated from that employment;
       ``(B) if the borrower is involuntarily separated from 
     employment on account of misconduct, or voluntarily separates 
     from employment, before the end of the period specified in 
     the agreement, the borrower will repay the Attorney General 
     the amount of any benefits received by such employee under 
     this section;
       ``(C) if the borrower is required to repay an amount to the 
     Attorney General under subparagraph (B) and fails to repay 
     such amount, a sum equal to that amount shall be recoverable 
     by the Federal Government from the employee (or such 
     employee's estate, if applicable) by such methods as are 
     provided by law for the recovery of amounts owed to the 
     Federal Government;
       ``(D) the Attorney General may waive, in whole or in part, 
     a right of recovery under this subsection if it is shown that 
     recovery would be against equity and good conscience or 
     against the public interest; and
       ``(E) the Attorney General shall make student loan payments 
     under this section for the period of the agreement, subject 
     to the availability of appropriations.
       ``(2) Repayments.--
       ``(A) In general.--Any amount repaid by, or recovered from, 
     an individual or the estate of an individual under this 
     subsection shall be credited to the appropriation account 
     from which the amount involved was originally paid.
       ``(B) Merger.--Any amount credited under subparagraph (A) 
     shall be merged with other sums in such account and shall be 
     available for the same purposes and period, and subject to 
     the same limitations, if any, as the sums with which the 
     amount was merged.
       ``(3) Limitations.--
       ``(A) Student loan payment amount.--Student loan repayments 
     made by the Attorney General under this section shall be made 
     subject to such terms, limitations, or conditions as may be 
     mutually agreed upon by the borrower and the Attorney General 
     in an agreement under paragraph (1), except that the amount 
     paid by the Attorney General under this section shall not 
     exceed--
       ``(i) $10,000 for any borrower in any calendar year; or
       ``(ii) an aggregate total of $60,000 in the case of any 
     borrower.
       ``(B) Beginning of payments.--Nothing in this section shall 
     authorize the Attorney General to pay any amount to reimburse 
     a borrower for any repayments made by such borrower prior to 
     the date on which the Attorney General entered into an 
     agreement with the borrower under this subsection.
       ``(e) Additional Agreements.--
       ``(1) In general.--On completion of the required period of 
     service under an agreement under subsection (d), the borrower 
     and the Attorney General may, subject to paragraph (2), enter 
     into an additional agreement in accordance with subsection 
     (d).
       ``(2) Term.--An agreement entered into under paragraph (1) 
     may require the borrower to remain employed as a prosecutor 
     or public defender for less than 3 years.
       ``(f) Award Basis; Priority.--
       ``(1) Award basis.--Subject to paragraph (2), the Attorney 
     General shall provide repayment benefits under this section--
       ``(A) giving priority to borrowers who have the least 
     ability to repay their loans, except that the Attorney 
     General shall determine a fair allocation of repayment 
     benefits among prosecutors and public defenders, and among 
     employing entities nationwide; and
       ``(B) subject to the availability of appropriations.
       ``(2) Priority.--The Attorney General shall give priority 
     in providing repayment benefits under this section in any 
     fiscal year to a borrower who--
       ``(A) received repayment benefits under this section during 
     the preceding fiscal year; and
       ``(B) has completed less than 3 years of the first required 
     period of service specified for the borrower in an agreement 
     entered into under subsection (d).
       ``(g) Regulations.--The Attorney General is authorized to 
     issue such regulations as may be necessary to carry out the 
     provisions of this section.
       ``(h) Study.--Not later than 1 year after the date of 
     enactment of this section, the Government Accountability 
     Office shall study and report to Congress on the impact of 
     law school accreditation requirements and other factors on 
     law school costs and access, including the impact of such 
     requirements on racial and ethnic minorities.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $25,000,000 for fiscal year 2008 and such sums as may be 
     necessary for each succeeding fiscal year.''.

  Mr. DURBIN. Mr. President, I will defer to the chairman and ranking 
member as the sequence of amendments are considered on the bill. My 
amendment, I assume, is currently pending, but I understand if there is 
a different sequence both of these Senators would seek.
  I thank the Chair.
  The PRESIDING OFFICER (Mr. Kennedy). The Senator from Wyoming is 
recognized.
  Mr. ENZI. Mr. President, I appreciate the Senator being willing to 
allow us to go back to the previous amendment or on to another 
amendment. We have one more that will be presented on our side. I think 
there is another one that will be presented on the Democratic side.
  I do have to oppose this amendment. I understand the importance, the 
desire, but I would oppose it on the basis that we spent a lot of time 
last week doing this same thing. I appreciate the time the Senator from 
Massachusetts, Mr. Kennedy, took to explain to everybody what we were 
doing in a very general way so we did not have to pick one profession 
over another profession so we could give some reduced loan repayments 
and then forgiveness to public prosecutors, defenders, teachers--a 
whole category, a whole bunch of service sector people. There was a lot 
of support, although we spent more time debating that part than we did 
several other parts of the bill, showing there is some discomfort with 
doing that, but also support for doing that, but in a general way.
  When we start picking out one particular area of Federal service over 
others, what we are doing is touching off a whole raft of people coming 
in with their particular public service and asking for the same kind of 
a reduction. Of course, if we do that for everybody, we have increased 
the cost considerably. We ought to start with the proposal that is in 
there, and after that works, make modifications to it, rather than 
encouraging every specialty of public service to come in and do that as 
well.
  I know the Judiciary passed it. That does not surprise me. That is a 
special Judiciary category. If it were a category coming through one of 
the other committees that dealt with their committee, it would get that 
same kind of support. But what we tried to do is come up with a way we 
could have fairness between professions. Each of the professions we 
talked about have some special needs, and we would be able to encourage 
and incentivize people to go into those professions earlier, quicker, 
and with less debt if we have this same kind of proposal for them. So I 
hope we will resist separating the prosecutors and public defenders at 
this point in time when we have included them in other language with 
loan forgiveness. Although it is not as short a period of time as the 
Senator might like, I think it is what we ought to do at the present 
time, and we shouldn't be increasing the program and then leveraging 
everybody else at the same time.
  I yield the floor and reserve the remainder of my time.
  The PRESIDING OFFICER (Mr. Kennedy). The Senator from Illinois is 
recognized.
  Mr. DURBIN. Mr. President, I respect the Senator from Wyoming. I wish 
to make sure we understand what happened last week. It was a good 
thing. We basically kept the amount that all student borrowers would 
pay based on the income they receive. As I understand the bill that was 
passed last week, which I was happy to support, there is a cap at 15 
percent of the discretionary income of graduate students for those 
loans that are either in the Direct Loan Program or consolidated into 
the Direct Loan Program.
  Basically, what it means from the chart I saw is that students, 
instead of paying back $600 or $700 a month, might face half that 
amount they would pay back because of the limit they would pay each 
year of 15 percent discretionary income, which I understand to be gross 
income less 150 percent of poverty for the student or the graduate in 
that category.
  The reason I have come back this week to offer this is because we are 
talking about a group of individuals who are in an exceptional 
circumstance. They are people who will face an even greater debt than 
most college graduates. In addition to their undergraduate debt, they 
have the debt of a law education, which, as I noted here, can be 
substantial--almost $80,000 for those who have gone to public law 
schools, and $50,000 for those in private law schools on top of their 
undergraduate debt. Then we find that two-

[[Page 19991]]

thirds of these students cannot seriously consider taking any job in 
public service or Government work because of the amount of their debt. 
So we have prosecutors coming in from all over the United States--and I 
would bet from your own State--saying: We are having some difficulties 
here. We can't attract the kind of talented young men and women from 
law schools, because of their debt, to come work as prosecutors and 
defenders in the criminal justice system and once there, we can't keep 
them. As soon as they have a good offer to go with a private firm, they 
leave. One of the compelling reasons is the fact that their student 
debt is so high.
  So even though the bill passed last week is a good step, it is not 
adequate to the task. These particular graduates face more debt--
dramatically more debt--than ordinary undergraduates or even graduate 
degree students in America. We have a special need. I would say to the 
Senator from Wyoming, I guess you can argue that this is special 
interest because it deals with our system of justice, but I think we 
all concur that as legislators, we can pass the best laws in the world 
in the criminal justice system, but if we don't have well-trained and 
competent lawyers prosecuting those cases on behalf of the people of 
this country, defending those charged on behalf of those who have been 
named defendants, then our system of justice will not work as well as 
it should.
  I will concede that this goes after a special group, but I think 
there are special circumstances that warrant it.
  So I hope the Senator will reconsider his opposition to this. As I 
said, it has bipartisan sponsorship because I think people realize that 
if we don't do this, we will diminish this branch of our Government 
which is so important for our democracy.
  Mr. ENZI. Mr. President, I thank the Senator for his explanation. I 
would suggest that the phones are probably ringing off the hook over in 
my office saying: My public service profession is as important as those 
public defenders, and that is probably what this phone call was on the 
floor over here earlier as well.
  I yield the floor and reserve the remainder of my time.
  The PRESIDING OFFICER. The Senator from Oklahoma is recognized.


                           Amendment No. 2369

  Mr. COBURN. Mr. President, I ask unanimous consent to set aside the 
pending amendment and call up amendment No. 2369 and ask for its 
immediate consideration.
  The PRESIDING OFFICER (Mr. Durbin). Is there objection?
  Without objection, it is so ordered.
  The clerk will report.
  The legislative clerk read as follows:

       The Senator from Oklahoma [Mr. Coburn] proposes an 
     amendment numbered 2369.

  Mr. COBURN. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

  (Purpose: To certify that taxpayers' dollars and students' tuition 
          support educational rather than lobbying activities)

       At the end of title I of the bill, insert the following:

     SEC. 114. DEMONSTRATION AND CERTIFICATION REGARDING THE 
                   ABSENCE OF PAYMENTS FOR INFLUENCE.

       Each institution of higher education or other postsecondary 
     educational institution receiving Federal funding, as a 
     condition for receiving such funding, shall annually 
     demonstrate and certify to the Secretary of Education that no 
     student tuition amounts or funds from a Federal contract, 
     grant, loan, or cooperative agreement received by the 
     institution were used to hire a registered lobbyist or to pay 
     any person or entity for influencing or attempting to 
     influence an officer or employee of any agency of the Federal 
     Government, a Member of Congress, an officer or employee of 
     Congress, or an employee of a Member of Congress in 
     connection with any Federal action.

  Mr. COBURN. Mr. President, I wish to thank Senator Kennedy and 
Senator Enzi for allowing me to offer this amendment. Everything I try 
to do is toward transparency in our Federal Government, because what 
you cannot measure, you cannot manage.
  This is a very simple amendment. What we know is that in the last 7 
years, the cost of a 4-year college education has doubled. It has gone 
from $2,700 to $5,800 at State universities. It has gone from about 
$10,500 to $23,000 at private universities. The costs have doubled. It 
is the only thing in this country that is rising twice as fast as the 
cost of health care. We ought to ask ourselves why.
  This amendment is very clear. What it says is if you are a university 
and you are lobbying Congress, you have to certify to Congress that you 
are not spending tuition money or other Federal money that you have 
gotten for a project for your students or for your university in terms 
of lobbying to get more money.
  This, by the way, was excluded from the lobbying and ethics bill we 
considered. I have some experience on it because last year, as chairman 
of the Subcommittee on Federal Financial Management, Government 
Information, Federal Services, and International Security of the 
Committee on Homeland Security and Governmental Affairs, I queried 500 
colleges and universities in this country, asking them about their 
earmarks. I asked them how they spent the money. The interesting thing 
is only 50 percent of them replied, and of the 50 percent that replied, 
only half of them actually knew where the money went. The other half 
didn't dare reply, either because they didn't know where the money went 
or the money didn't go for the purpose it was earmarked. So we have a 
grave problem in terms of earmarks.
  Let me give my colleagues some statistics about what has happened. 
First of all, in 2005, $127 million were spent by universities to lobby 
our institution to get earmarks--$127 million. Divide that and see how 
many kids we could educate in this country with that amount of money 
that was spent on lobbying.
  What we do know is between 1996 and 2005, the number of earmarks at 
the Department of Education increased by 29,375 percent. I wonder if 
that has anything to do with this marked increase of 14.5 percent per 
year in the cost of a college education.
  Those earmarks--the overall cost of the earmarks came to a half a 
billion dollars a year last year--a half a billion dollars in earmarks. 
What we also saw--that was in the Department of Education. Then, 
separate earmarks for separate universities and colleges in the same 
time period increased from 369 to 1,964, up to $2 billion a year. Now, 
you would think that for $2.5 billion a year, we ought to be able to 
see where the money is spent. We ought to have transparency to see.
  There are several problems with our earmarking, and the biggest 
problem is we choose to pick winners and losers. When we do that on 
research and development at our universities, which are the ones we 
want to do it to, when we do it, we say that the peer review scientific 
community shouldn't have any input. That is what we are saying. 
Consequently, when we spend $2.6 billion on earmarking specific 
projects at universities, what we are doing is getting a whole lot less 
value for our money. What we do know is if we let the scientists, 
through peer-reviewed guidance of scientific discovery, tell us where 
to go next, we will get two to three to four times return on our 
research than when I, as a Senator from Oklahoma, decide to earmark a 
specific research project at a university in the State of Oklahoma.
  Now, the question we should be asking--similar to the amendment of 
the Senator from Illinois--where is the money going to come from? The 
true deficit last year was $434 billion. That is not what we told the 
American people, but that is how much our debt increased, so that is 
what the actual increase in expenditures over the increase in revenues 
was. If I was a prosecutor, I would love Senator Durbin's amendment, if 
I owed the money.
  But the principle we should be thinking about is this: Why are we 
having trouble getting the best into the offices of the public 
defenders and the prosecutors? Because we don't pay enough. What 
Senator Durbin is attempting to do is a State function. It is an 
indirect payment. We are going to pay off loans, we are going to have 
loan forgiveness for this group of people when, in fact,

[[Page 19992]]

the way we should be enhancing that is having States choose to increase 
reimbursement for people who fulfill that very worthy task.
  So what we are actually doing is jumping all over States' rights, 
because States haven't increased those fees, as they should, because 
they don't evidently value it the way the 38 cosponsors of the Durbin 
amendment do, and we are saying: Time out. It is not your 
responsibility; we are going to do it. It is the same type of thing we 
have in terms of earmarks.
  This amendment is very simple. Certify to Congress, if you are 
getting Federal funds and you want more Federal funds in terms of 
earmarks or grants, that you are not going to spend that money or your 
students' tuition to come up here to get more money. What you ought to 
do is use your endowment.
  There are some very interesting statistics on endowment that I would 
like to alert my colleagues to so everybody can be aware. I commend to 
my colleagues a 2006 National Association of College and University 
Business Officers Endowment Study.
  The top 25 universities in this country have $178 billion in 
endowments. Now, if they earn 6 percent on that, that is $9 billion a 
year that they have funds available to them to do research with, or 
whatever else they want to do. If you take the entire group of 
endowments, which is some 20 pages long, what you find is a massive 
amount of money that is endowed.
  Why do people give to universities? They give to universities to 
secure their future because they felt rewarded by the gift they gave 
them of education. Yet we have almost $1 trillion in endowments in this 
country in universities, and we are saying we need earmarks. We need 
extra moneys. Fine. If we do need extra moneys for research, let's let 
the peer-reviewed scientific community tell us where to go. Let's put 
the research at the place that it is going to get us the best return, 
rather than one that has the greatest political pull. That makes 
absolute sense to anybody outside of Washington.
  Now, it doesn't make sense if you are trying to get something for 
your university, and University X obviously has the expertise, but you 
want it at your university. So what do we do? We end up paying double. 
We are going to fund one that is not as efficient, not as capable, and 
not as successful at the expense of the university that is far more 
capable of doing that.
  A lot of the university earmarks came about because it was stated 
they couldn't compete on the grant process; that the major 
universities--those top 25 research universities in the United States--
could outcompete them all on grants. So we did some things when we 
doubled NIH funding. We did allow for things. What has happened is a 
pox on our house. We have gone to this large number of earmarks, 2,000 
earmarks a year for universities, and we are not getting our money's 
worth for them.
  I come back to one of the reasons I would like for us to consider 
this amendment: How do you tell a student who is working a second job, 
who can't afford a tutor, he has borrowed student loans up to his gills 
and is trying to make it, that a percentage of his university's budget 
out of his tuition is coming up here to get another earmark that is not 
necessarily going to be efficient or not going to enhance or advance 
his education or her education?
  So it is real simple. Transparency creates accountability.
  I ask unanimous consent to have printed in the Record four case 
studies--one from the University of Alaska, one from the University of 
North Carolina, Chapel Hill, one from the University of Georgia, and 
one from Iowa State University--on what they have done with earmarks 
and how they have spent them. It is remarkable.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

       Lobbyist confirms that academic earmarks are indeed a 
     ``gateway drug on the road to spending addiction'': Earmarks 
     are the ``gateway drug to the spending addiction.'' A 
     lobbyist for one of the universities polled (the University 
     of Alaska) agrees. According to a profile of this lobbyist in 
     the Chronicle of Higher Education, ``She equates getting 
     earmarks to having a heroin addiction. `Once you start 
     getting them, it's hard to let go.''' It's noteworthy that 
     this same lobbyist advised her institution not to respond to 
     the Subcommittee's oversight request on the University of 
     Alaska's past earmarks.
       ``Martha Stewart, director of federal relations for the 
     University of Alaska, is one who said her institution would 
     not respond.
       ``Stewart said she showed the Coburn request to the Alaska 
     Congressional delegation, including the office of Stevens, 
     whose clout as an appropriator and earmarker is legendary.
       ``Answering the letter `would be providing someone with 
     bullets to shoot you,' said Martha Stewart, director of 
     federal relations for the University of Alaska system. She 
     said she assumes that Senator Coburn would use the 
     information to try to block Alaska's requests for earmarked 
     projects--which she declined to describe--from appropriations 
     bills for the 2007 fiscal year, which begins October 1.''
       Lobbying for academic earmarks is on the rise: In 2003, it 
     was reported that:
       ``[T]he brisk rate of growth has outpaced almost all other 
     sectors that pay for lobbyists. That has made higher 
     education one of the biggest players on the lobbying scene in 
     Washington, on a par with defense contractors and ranking 
     ahead of some other large, influential interest groups such 
     as lawyers, labor unions, and the construction industry, 
     according to rankings compiled by Political Money Line, a 
     company that tracks lobbying reports . . . By far the single 
     biggest reason for the spurt appears to be the appetite 
     colleges have for pork-barrel projects. The burst in lobbying 
     came at a time when Congress was quadrupling spending on 
     directed, noncompetitive grants from $495-million to $2-
     billion. Such earmarks were rare 20 years ago, but the 
     floodgates opened in the late 1990s.''
       Even though universities claim to be lobbying innocently 
     for general education funding increases, in fact, this 
     lobbying is often for specific projects: In response to the 
     Subcommittee's questions, a number of universities reported 
     that the lobbyists they hire are to help them reach out to 
     Congress for general issues related to academia and the need 
     for more federal research dollars. But there's some evidence 
     that schools are lobbying for specific projects:
       ``The Chronicle collected and analyzed lobbying-disclosure 
     reports for all colleges, universities, and other academic 
     institutions for the 1998, 2001, and 2003 calendar years. . . 
     . While the reports are supposed to state the purpose of the 
     lobbying, the wording often mentions federal appropriations 
     generally, not specific projects.
       ``The reports do show that not all of the academic lobbying 
     is for earmarks . . . But at many colleges, officials don't 
     feel compelled to pay lobbyists to spend lots of time on 
     those and other policy issues because they know places like 
     Yale and Rutgers are already making the case, as are higher-
     education associations like the American Council on 
     Education.
       ``Most institutions apparently prefer to concentrate their 
     lobbying dollars on getting earmarks.'' [Emphasis added.]
       The resistance universities show to disclosing information 
     about their lobbying activities suggests that they recognize 
     the unsavory nature of this sort of spending. The 
     Subcommittee specifically asked about the use of lobbyists to 
     help obtain earmarks.
       The response--or lack of it--was surprising. Despite 
     receiving taxpayer money for special projects, some 
     universities were still unwilling to answer the question. Of 
     the top 50 pork recipients for 2003, and the top 50 R&D 
     ranked universities questioned: 23 wouldn't respond to 
     whether they retained a lobbyist--they simply skipped the 
     question or did not write a letter response at all; 6 said 
     they had ``considered'' hiring a lobbyist, but didn't respond 
     whether they had actually hired a lobbyist or not, and two 
     said they had ``no plan to retain a federally lobbyist at the 
     moment''; 22 stated that they retained a contract lobbyist; 
     14 stated that they had not hired a contract lobbyist; and 5 
     stated they had hired a contract lobbyist in the past, but 
     not at the time of their response.


                   Case study: University of Georgia

       Which comes first--the lobbyist or the earmark? And is 
     either actually a value to a student? At the University of 
     Georgia--it's hard to tell. The university retains a lobbyist 
     who seems to be an expert in the peanut and Vidalia onion 
     industry, among other things, and the University has received 
     federal earmarks for research on Vidalia onions and peanuts. 
     However, because the University is hiding information on 
     those particular earmarks, it's hard for students and 
     taxpayers to judge the educational value of the projects.
       In fact, the university tasked its lobbyist with responding 
     to the Subcommittee inquiry. The response was sent from the 
     email account of ``C. Randall Nuckolls, Washington Counsel, 
     University of Georgia, McKenna Long & Aldridge LLP.''
       According to the Center for Responsive Politics' 
     OpenSecrets.org website, Mr. C. Nuckolls' firm, McKenna Long 
     & Aldridge, earned $160,000 in 2006 from its contract with 
     the University of Georgia.

[[Page 19993]]

       In addition, data compiled by the Center for Responsive 
     Politics shows that the University of Georgia also paid 
     another lobbyist, Robert Redding, Jr., $40,000-$60,000 each 
     year for the years 2000-2006. In 2006, the University paid 
     $20K for the main university campus and $20K for the 
     University of Georgia School of Agriculture & Environmental 
     Sciences. Robert Redding, Jr., also represents the Georgia 
     Peanut Commission, the National Association of FSA County 
     Office Employees, and the Vidalia Onion Business Council, 
     among others.
       In response to the question about its past earmarks, the 
     university supplied the subcommittee with a three page 
     attachment with the titles of only 9 earmarked projects from 
     2000-2006, the amount of funding, the funding agency, and a 
     short description of the earmark projects. The total value of 
     projects listed was $62.117 million. That's 9 earmarks 
     reported, for the 7-year period from 2000-2006.
       However, the Chronicle earmarks database tells a different 
     story. The database lists 53 earmarks distributed over just 
     four of the years in that 7-year period, worth nearly $41 
     million to the University of Georgia. Information after 2003 
     is unavailable because earmarks grew so much that the 
     publication no longer had the resources to keep track of 
     them.
       Meanwhile, the Congressional Research Service has refused 
     to conduct research in this area, despite repeated requests.
       Two earmarks the University failed to report to the 
     Subcommittee come from the U.S. Agency for International 
     Development's (USAID) budget. One earmark, for $200,000 in 
     2000 was ``for support above what the agency would otherwise 
     have spent, to promote the availability of food in developing 
     nations by educating leaders to manage natural resources.'' 
     The second earmark, for $200,000 in 2000, was for ``for 
     support above what the agency would otherwise have spent, to 
     improve the production, processing, and marketing of peanuts 
     in developing nations as a high-protein food source.''
       Even when the university did report earmarks, it grouped 
     them in vague categories, particularly those from the 
     Department of Agriculture. The Chronicle database is more 
     forthcoming about what the university merely described as 
     ``Ag special research grants.'' These types of earmarks come 
     from a pork-slush-fund at USDA, and include the following for 
     the University of Georgia: $16 million from 2001-2003 to 
     conduct ``research to combat fusarium head blight, or scab, a 
     fungus that damages wheat and barley''; $170,470 in 2003 to 
     ``develop the cultivation and marketing of grass-fed cattle 
     raised in the Appalachian region''; $488,615 over three years 
     for ``research on predation by small mammals, such as 
     raccoons and foxes, on ground-nesting game birds''; $657,000 
     over two years for ``research on pests, soil quality, and 
     water quality related to the cultivation of peanuts''; 
     $800,000 over two years for research on the ``quality of 
     cotton fibers''; $493,000 over two years ``to study the 
     quantity of water used in agriculture in Georgia''; 
     $1,972,000 over four years for ``research on canola''; 
     $1,800,000 in 2000 for ``unspecified research''; $1,091,000 
     over three years for the for the National Center for Peanut 
     Competitiveness, ``which works to improve peanut-production 
     methods and product safety''; $694,000 over three years ``for 
     research on tomato-wilt virus, which damages peanuts'' 
     $350,000 over three years ``to develop pungency-testing 
     procedures to improve the quality and ``sensory consistency'' 
     of Vidalia onions''; $64,000 in 2000 to ``to develop better 
     methods of monitoring and controlling termites and ants''.
       That's 12 projects under one vague category reported to the 
     Subcommittee as one item. What else is the University of 
     Georgia hiding?


                  Case study 2: Iowa State University

       When asked by the Subcommittee to provide a list of past 
     appropriations from the year 2000 to present, and the amount 
     of assistance received, Iowa State University apparently did 
     not have this information available in any form that could be 
     presented to the Subcommittee. The university asked for 
     additional time to comply with the request, along with 
     answering a few of the questions in the initial response.
       The university was granted more time by the Subcommittee to 
     complete a response. Three months after the original request 
     date, the university sent a second response letter, a 
     notebook containing summaries of Iowa State University 
     Congressionally directed funding 2000-2006 (minus the 
     requested actual funding amounts), and 6 boxes containing, 
     according to the letter, ``540 published reports, studies, 
     and other materials that had been produced throughout the 
     requested timeframe.''
       Quotes from second response:
       ``I want to thank you for making this request, because 
     compiling this information has proved very useful to the 
     university. We have added this information to our own on-
     campus process of evaluation and review of federally 
     appropriated projects. To that end, we took great care to 
     make sure that we collected and reviewed all relevant 
     information for our own purposes as well as your request. We 
     regularly go to great lengths to assure the merit and value 
     all university research, but I am also aware of the 
     importance of additional informed review. Following this 
     letter is a compilation of the congressionally directed 
     funding that Iowa State University has received from FY2000 
     through FY2006.''
       The second response from Iowa State University was heavy on 
     detail when it came to lists of published reports (provided 
     only for some projects; others included far less detail), but 
     not when it came to requested information. Only one of the 31 
     earmark summaries included in the notebook sent by the 
     University contained a table breaking out funding streams by 
     sponsoring agency for the earmark in Question. but even that 
     table did not include the years the university received 
     funding for the project, and the table was rife with acronyms 
     (a practice well known in D.C. and apparently also in the 
     academic world) and therefore not easily decipherable. Only 
     one other project included a paragraph describing the history 
     and origin of the earmark, and some information on the 
     funding stream, as well as details on significant oversight 
     by the lead agency from which the funding originated.
       Despite the reams of paper provided by the university, The 
     Chronicle database lists a significant number of earmarks 
     which do not appear in the project summaries provided by Iowa 
     State University. However, what is even worse is the 
     university's lack of responsiveness on the funding for the 
     earmarks they chose to highlight to the subcommittee: the 
     total value of the earmark funding from the Chronicle 
     database for the years 2000 through 2003, is over $83 
     million. Information after 2003 is unavailable because 
     earmarks grew so much that the publication no longer had the 
     resources to keep track of them.


       Case study 3: University of North Carolina at Chapel Hill

       In response to the FFM Subcommittee's oversight request, 
     the university provided a list of 17 earmarks spanning six 
     years, from 2001-2006, worth a total value of $17.7 million. 
     The university included brief, one sentence ``program 
     objectives'' for each earmark it listed its response. These 
     cursory sentences do not answer the Subcommittee's request 
     for detailed descriptions, findings and accomplishments for 
     each project.
       According to the University, 8 of those projects were 
     funded from earmarks handed out over the years 2001-2003 with 
     a value of $6.975 million. However, in contrast, over the 
     same timeframe, the Chronicle database lists 10 non-shared 
     earmarks, and two shared earmarks distributed over 2001-2003, 
     with a total value of a little over $14 million.
       According to data in the Chronicle earmarks database, for 
     the three years 2001-2003, the university failed to include 
     and report on the following earmarks funding 6 projects with 
     a total value of $12.593 million. Without Chronicle data, who 
     would know the difference--and who knows for the years 2004 
     through 2006 since information after 2003 is unavailable 
     because earmarks grew so much that the Chronicle no longer 
     had the resources to keep track of them. Here are the six 
     projects: $3.5 million over three years from the Department 
     of Defenses for ``Research on improving logistics management 
     for the military and businesses, and to develop an executive-
     education project''; $223,537 from the Department of Defense 
     in 2002 for ``personnel, student internships, research, and 
     other expenses to expand technological education and 
     applications through its KnowledgeWorks Institute''; $2.4 
     million through NASA over 2002-2003 for ``academic programs 
     at the Science Discovery Outreach Center''; $4 million in 
     2002 through the Department of Defense for the ``Southeast 
     Atlantic Coastal Ocean Observing System (to be shared with 
     the University of Miami)''; $969,000 from the Department of 
     Energy for ``mathematical and computational research and 
     software development to solve environmental problems''; $1.5 
     million in 2002 through the Environmental and Protection 
     Agency to ``advance the `one-atmosphere approach' to 
     determining the health effects of air pollution for the 
     university's schools of public health and medicine''
       FFM Subcommittee staff received calls and faxed 
     communications from the university's lobbyist, James E. 
     Hyland, who helped to coordinate the response and who 
     forwarded the university's first interim response via fax. 
     According to the Center for Responsive Politics' 
     OpenSecrets.org website, James E. Hyland, ``Career Client 
     List, 1998-2006,'' works for Greenberg Traurig LLP, which had 
     a contract worth in $120,000 in 2006 alone with UNC.

  Mr. COBURN. With that, I will cease discussing this other than to say 
we ought to figure out why a college education and the costs thereof 
are growing twice as fast as health care, which is four times as fast 
as everything else in this country. Something isn't right. Transparency 
is the key to getting accountability for that problem. To vote against 
this amendment would be saying you don't want the universities to be 
transparent, to be accountable. I believe they should be accountable 
and certify to us that not one penny of tuition, one penny of Federal 
money is

[[Page 19994]]

spent back here. Mr. President, $127 million was spent last year to 
lobby this body on university grants and earmarks. We ought to change 
that. That could educate a ton of our young people.
  With that, I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
  Mr. KENNEDY. Mr. President, I am wondering if the Senator would help 
clarify his amendment for me. How much time do I have?
  The PRESIDING OFFICER. The chairman has 15 minutes.
  Mr. KENNEDY. Let me know after I have used 7 minutes.
  The PRESIDING OFFICER. The Chair will do so.
  Mr. KENNEDY. Would the Senator be good enough to answer some 
questions?
  Mr. COBURN. Yes.
  Mr. KENNEDY. I was reading through the amendment. As the Senator 
knows, we have at the present time on the bill the Byrd amendment, 
title 31 of the U.S. Code, which forbids what I imagine is much of this 
amendment. Under the law, recipients of Federal contracts--whether 
through grants, loans, or cooperative agreements--are barred from using 
those funds to lobby, to extend, or modify a Federal award.
  I am trying to understand what you include that his amendment doesn't 
include. Let me ask the question: if the President of a university or a 
government affairs person of the university called a Member of Congress 
about the student loan program, is that considered to be part of a 
lobbying effort? This is on my time.
  Mr. COBURN. No. What I am looking at is for them to, in a positive, 
forward way, assert that as they take Federal funds, those funds are 
not used to, in fact, pay a lobbyist. When a university President calls 
you, he is not calling as a lobbyist. He has a right to lobby this as 
an individual. My amendment is fairly narrow in that those funds are 
not spent to lobby, i.e. lobbying payment.
  Mr. KENNEDY. I was interested, if there is a government affairs 
person at one of our fine universities--for example, Tufts University 
in Massachusetts, which was in touch with us about loan forgiveness. In 
government affairs, they have an interesting program where they had a 
good deal of loan forgiveness for students, and they were calling 
asking about how their program fits in with this bill. It was a 
government affairs figure who called us about this, signaling that they 
thought their program was better than the one we had. Is that 
considered lobbying by the government affairs person?
  Mr. COBURN. No.
  Mr. KENNEDY. If there were inquiries on No Child Left Behind, on the 
special needs of disabled children, or they wanted to find out about 
bilingual programs and about grants from the NIH--there is this 
concern, as the Senator knows, about cuts in the NIH budget, and I have 
had calls from some of the great research centers in my home State, 
from universities and in some instances from presidents and in some 
instances from government affairs people, about their concern about 
where we are going as a country in terms of NIH and in terms of the 
future. Does it affect any of those?
  Mr. COBURN. No, sir.
  Mr. KENNEDY. Even though the universities may be affected by some of 
these cuts. Is it just that the lobbyists--the hiring of the lobbyists 
and the lobbyists then speaking to the Member--I am trying to get what 
the Senator is driving at.
  Mr. COBURN. Will the Senator yield?
  Mr. KENNEDY. Yes.
  Mr. COBURN. I am trying to get to this paradigm where we pay $200,000 
a year for lobbyists, and the lobbyists work to get an earmark for the 
university back in that is out of the priority of the peer review, 
scientifically evaluated, and at the same time, some of that $200,000 
somehow ends up in campaign coffers, for some reason. I cannot figure 
out why, but it seems to. This doesn't stop it. What this says is they 
are going to just certify that the money they used for that wasn't 
their students' tuition and other Federal dollars that were designed 
for another purpose and coming back against that. It doesn't mean they 
cannot pay a lobbyist or hire a lobbyist or that anybody in there 
government affairs office cannot contact us to lobby for a particular 
position, which is their right. This is very narrowly defined to say: 
Do not spend the money you get from us, or your students, to hire the 
lobbyists to earmark something that is outside the peer review.
  Mr. KENNEDY. I think that might be wrong. I thought that was the 
point of the Byrd amendment. In your language you have on page 2, ``any 
person or entity for influencing or attempting to influence an officer 
or employee of any agency of the Federal Government, a Member of 
Congress, an officer or employee of Congress, or an employee of a 
Member of Congress in connection with any Federal action.'' I am trying 
to understand this. Can a government affairs person at a university--I 
am a Member of Congress--talk to me about support for the NIH and NIH 
funding?
  I hear what the Senator wants to do. I would be interested in where 
you get the $127 million. I will accept what the Senator says on this.
  I had thought, when we passed the Byrd amendment, Senator Byrd spoke 
very eloquently about what I think the Senator is dealing with, and 
that is lobbyists getting part of the action when they have the 
earmark. I thought that is the effect.
  It goes further than that, but I am concerned about--and I have said 
this in my questions--whether you have a person representing a 
university or a government affairs person calling a Member of Congress 
about a lot of the matters that we are considering in this legislation, 
whether it is a student loan program or the NIH or whether it is the 
regulations that are guiding some of the education programs, the 
programs dealing with disabled student--let me ask you, how would this 
affect a university? If there was a conference by one of the agencies--
the Department of Education--and they were having a conference on the 
subject of higher education, can the university send any individuals 
there to express their views on education policies? Say they want to go 
down there and see more laboratories built because they want additional 
research, and they speak to the Department of Education about those 
kinds of items.
  Mr. COBURN. It does not limit that in any way.
  Mr. KENNEDY. The Senator's responses are helpful. I don't know 
whether the Senator is familiar with the Byrd amendment. If it is not 
interfering with colleges or universities or institutions dealing with 
a wide range of educational issues or some of the fine schools that 
offer criminology wanting to call the Justice Department to try to get 
grants to deal with the problems of violence in the communities. But 
the Senator has given assurance that is not the area he is trying to 
get at. It is basically the lobbyists. I don't know whether the Senator 
is familiar with title I of the Byrd amendment, which prohibits, as I 
understand it, a great deal of what the Senator spoke about with great 
eloquence in the earlier program.
  Mr. COBURN. Will the Senator yield?
  Mr. KENNEDY. Yes, I am glad to.
  Mr. COBURN. What we are trying to get is this. It is true that the 
Byrd amendment makes that illegal. The problem is that nobody has to 
certify it. So whether it is illegal or not, it is obviously happening. 
Yet we don't have any proactive basis going on at the universities for 
them to certify that they are not doing it. That is the difference 
between this and the Byrd amendment.
  Mr. KENNEDY. Just to continue, Mr. President, there are penalties 
with the Byrd amendment, civil penalties on the Byrd amendment. Maybe 
it is enforcement. The Byrd amendment says:

       None of the funds appropriated by any Act may be expended 
     by the recipient of a Federal contract, grant, loan, or 
     cooperative agreement to pay any person for influencing or 
     attempting to influence an officer or employee of any agency, 
     a Member of Congress, an officer or employee of any agency, a 
     Member of Congress, or an employee of a Member of Congress in 
     connection with any Federal action described in paragraph (2) 
     of this subsection.

  Then it goes on:


[[Page 19995]]

       (2) The prohibition in paragraph (1) of this subsection 
     applies with respect to the following Federal Actions:
       (A) The awarding of Federal contract.
       (B) The making of any Federal grant.
       (C) The making of any Federal loan.
       (D) The entering into of a cooperative agreement.
       (E) The extension, continuation, renewal, amendment, or 
     modification of a Federal contract, grant, loan, or 
     cooperative agreement.

  If the Senator says this is pretty good language but not enforceable 
and he has ideas about how we can try to enforce it, I am certainly 
open to it and would welcome it. I don't have a problem.
  My concern was looking at the Senator's amendment and seeing that 
language talking about ``to pay any person or entity for influencing or 
attempting to influence an officer or employee of an agency of the 
Federal Government, a Member of Congress. . . .'' My office has 
frequent phone calls from universities and colleges, certainly as the 
chairman of the HELP Committee, particularly as we are dealing with 
this education issue--from scores of universities and colleges. They 
express strong views about different aspects of this. We have heard a 
great deal from the lending institutions--Sallie Mae and the others--
that have a direct financial interest in this. I think it is valuable 
to have clarity in this area so we know what is permitted and what is 
not permitted. These were some of the areas of concern that I had, and 
the Senator has been helpful.
  Mr. COBURN. If the Senator will yield, it put forth a parliamentary 
idea that the Byrd rule applies on bills consistent with 
reconciliation, if I am correct. What this is intended to do is 
proactively have--this does two things: It requires the university to 
know what they are doing, which is one of the things we found in my 
subcommittee--that they didn't know what they were doing. They weren't 
aware of where the money was going or how they were spending the money. 
It makes them look at that. Two, it makes them proactively say they are 
within the law in terms of how they are spending the student money and 
the Federal money.
  I appreciate the colloquy on this issue. I hope we have clarified the 
intent of the amendment. I am more than happy to accept a second degree 
that would clarify it more and that would give Senator Kennedy the 
safeguards he is concerned about. Nevertheless, there is a gigantic 
problem out there today, not the least of which is that it is hard to 
find in the Constitution where we should be earmarking $2.6 billion a 
year to private and State universities for education.
  Mr. KENNEDY. Mr. President, the Senator is quite correct. The Byrd 
rule applies to reconciliation. The Byrd amendment applies to this. Let 
me just say that I listened and there is much to what the Senator says. 
There are also some concerns. In 1980, we had, for example, a very good 
program to help colleges, large colleges and small, to develop research 
centers at the colleges and universities. What we had seen in our 
committee at that time was the deterioration of laboratories and 
research centers. We passed a very good bill. We had close to in excess 
of a billion dollars that was going out for peer review. That program 
was effectively eliminated. The budget cutters eliminated it. They 
eliminated the program but not the need. I haven't been very 
successful. I have done my best to try to help outstanding colleges and 
universities that are in need in terms of research, that are doing some 
of the breakthrough research, that are making progress in health and 
other areas, that are trying to get assistance. I am proud of that 
fact.
  I share the view that in a perfect world, we have peer-reviewed 
science. There is a lot to what he says. In other areas, we do the best 
we can with the circumstances we have.
  I will take a look at what we have in terms of whether an amendment 
or clarification would be the best way to proceed.
  I suggest the absence of a quorum.
  Mr. COBURN. Mr. President, how much time do I have remaining?
  The PRESIDING OFFICER. The Senator from Oklahoma has 4 minutes 48 
seconds remaining.
  Mr. COBURN. If I can be recognized, Mr. President?
  The PRESIDING OFFICER. The Senator from Oklahoma.
  Mr. COBURN. Mr. President, Senator Kennedy makes my point. In 1980, 
we had a program that was designed on merit, scientific, and peer-
reviewed analysis. We had no earmarks then. Now we have 2,000 earmarks, 
and about 1 out of every 3 accomplishes something, and then not to the 
level of what it should because most of the money did not go to the 
best place to get the research done.
  The Senator makes my point. We have a corrupted process in how we 
fund much of the money that goes to universities. Personally, the 
Senator from Massachusetts recognizes, I believe, that is not 
necessarily a legitimate role for the Federal Government, but it is one 
that is there. So if it is there, it ought to be transparent. We ought 
to be able to hold all universities accountable, and we ought to know 
where the money goes, how it is spent, and what money was spent to 
accomplish the receipt of that money in the first place.
  Those who vote against transparency like the status quo. You cannot 
fight against transparency. The facts are the facts. You cannot put a 
political spin on it. The facts will be the facts. The American 
people--actually, our American grandchildren, against whom we charged 
$434 billion this last year, ought to have the right to know where 
their money is being spent, and the devil is in the details on whether 
they are taking Federal money and using that Federal money to turn 
around to hire a lobbyist to get more Federal money. That is a corrupt 
system, and transparency will clean that up.
  I ask consideration of the amendment, and I ask for the yeas and 
nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.
  Mr. COBURN. Mr. President, is there an order in which the votes are 
going to roll this evening? Can this be combined into those votes? I 
thank the Senator.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. Without objection, the clerk will call the 
roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                    Amendment No. 2328, as Modified

  Mr. REID. Mr. President, I ask that the Reid amendment be withdrawn.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Mr. President, it is my intention--this has been cleared 
with the two managers--to have two votes tonight and finish whatever 
votes remain in the morning. It is my understanding that in the morning 
the first vote will be on the Dodd amendment. He is involved with other 
matters tonight. We will give him 5 minutes, and if there is 
opposition, they can have 5 minutes, or should we split 5 minutes, I 
say to my friend from Wyoming? I am not asking consent now--we will do 
that later--but I am giving an idea.
  Mr. ENZI. Mr. President, we should have some time for debate because 
I don't even know what amendment he is offering.
  Mr. REID. We will talk with the managers in more detail about that 
situation. Likely, what we will have is on the Dodd amendment, 5 
minutes equally divided, and on other amendments, there will be 1 
minute of explanation, for or against, and after that, 10-minute votes. 
We understand there could be three to five votes in the morning or 
there could be more. Whatever, we will finish in the morning. We will 
come in at 10 o'clock because of the leadership meetings that take 
place in the Capitol. There will be no morning business. We will go 
right to the bill and dispose of these amendments before we have our 
regular work sessions on Tuesday.
  Does that seem reasonable to my friend from Wyoming?

[[Page 19996]]


  Mr. ENZI. That sounds reasonable to me. I assume we are going to have 
a couple votes tonight.
  Mr. REID. Yes, that is what I said, we will do two votes tonight.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. CARDIN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Whitehouse). Without objection, it is so 
ordered.
  Mr. CARDIN. Mr. President, I take this time to speak in favor of the 
Durbin amendment. I thank my colleague from Illinois for introducing 
this important amendment. It gives us an opportunity to provide for 
equal access to justice in this country.
  There is a problem today in our legal system, and it is the cost of 
legal education. The average attorney who graduates from law school 
will have $70,000 of debt in addition to the $16,000 of average debt in 
attending an undergraduate school. When you have that type of debt, it 
affects your career choice.
  Today, we want to make sure we get the best qualified attorneys going 
into public interest law, whether it is as a prosecutor or whether it 
is as a public defender. I think Senator Harkin will be here, either 
later tonight or tomorrow, to talk about the civil legal services, and 
the average starting salary for a legal aid attorney is $36,000 a year. 
For a public defender or for a prosecutor, it is not much higher than 
that. How can you possibly take a career in those fields and still be 
able to pay off your loans?
  The Durbin amendment does something about it. It came through the 
committee on which I have the honor of serving, the Judiciary 
Committee. I think it is a well-balanced approach. I know we will 
probably have a chance to vote on this tomorrow--I don't believe we 
will vote on it tonight--but there will not be debate time available 
tomorrow, and I wanted to come to the floor and urge my colleagues to 
support the amendment.
  If Senator Harkin offers his second-degree amendment that deals with 
civil legal services, I hope this body will also support that 
amendment.
  I yield the floor.
  Mr. DURBIN. I thank my colleague from Maryland for his support. I 
might also say, during the course of the debate he raised an important 
issue--legal aid attorneys. These are attorneys who work primarily in 
the civil area, representing people of limited means. They are not very 
well paid. Many of them come out of law school facing debt on their 
own. We want to make sure that people, regardless of their economic 
status in America, have access to good legal counsel. So I have pledged 
to him--and I renew the pledge--that if there is a way for us to help 
the legal aid attorneys as well as defenders and prosecutors, we 
should.
  It is in the best interests of our country to have competent counsel 
available for all Americans in terms of our civil and criminal justice 
systems. Think about how much we count on prosecutors to take the bad 
guys off the street and keep them off. We don't want somebody bungling 
a trial because of lack of experience or lack of skill. We want the 
best and brightest as prosecutors. Similarly, if the system is going to 
work and work well, there is a good attorney across the table defending 
the person who has been charged so there truly is a contest that is 
respectful of our judicial system.
  The same thing for legal aid attorneys. Whether they are representing 
people of modest means who are dealing with the daily drudgery of 
divorce or wills or landlord-tenant issues or small claims court, we 
want to make certain that those who are of modest circumstances in this 
country do not lose because the race always goes to the swift; that is, 
to those with more money.
  I thank the Senator from Maryland for his commitment to this 
amendment and his general commitment to justice in this country.
  Mr. CARDIN. Will my colleague yield?
  Mr. DURBIN. I am happy to yield.
  Mr. CARDIN. I thank my colleague for his leadership on this issue. I 
know he has been working for many years to get this accomplished, and I 
hope this is the vehicle on which we will get it done. I had the chance 
to chair the Maryland Legal Services Corporation and chaired a 
commission in Maryland looking to services for our population, and 
there are not enough attorneys who will handle poverty law. There are 
not enough attorneys who will handle public defender cases. It is 
difficult to get experienced prosecutors today because you can go into 
a private law firm and make a lot of money, much more than you can as a 
public defender or legal aid attorney or as a prosecutor.
  The Senator's legislation gives us a chance to say we want to make 
sure every citizen in our State has equal access to justice in our 
State. I applaud him for it. I think this is what we need to do. We 
have a chance in this bill to get it done. I thank the Senator for 
bringing it to the floor, and I support his amendment.
  Mr. DURBIN. In my hometown of Springfield, IL, we have an appellant 
defender program. These are young men and women who handle cases on 
appeal after the trials and work for a government salary. When I 
announced this amendment--that we had the possibility of student loan 
forgiveness--two young women came to the press conference. One of them 
said to me that she has plotted out how long it will take her, working 
as an appellate defender, to pay off her student loan. She said, ``I 
will be paying when I qualify for Social Security.'' That is hard to 
imagine, but it is a fact. The debt these young lawyers incur to get 
through law school, unless they are lucky enough to grab the brass ring 
and go to a big law firm, is so large that it haunts them for a 
lifetime. It colors their life decisions as to where they will work, 
whether they can own a car, whether they can finally have an apartment 
of their own and move out of their parents' homes. All of these things 
are associated many times with student debt.
  Whether we are talking about appellate defenders or prosecutors or 
public defenders, I think we want to make sure these young people are 
spared some of this financial worry and some of this financial burden 
if they are willing to dedicate themselves to public service. That is 
what this is about.
  I think this is a noble calling, and I have to recall it has not been 
but a few weeks since a Justice of the Supreme Court testified before 
the Senate Judiciary Committee. This Justice came and said he thought 
the current pay for Federal judges was inadequate in America. That pay 
is in the realm of $165,000 to $200,000 or maybe more, certainly more 
at the Supreme Court level. We asked how much more he thought these 
Federal judges should receive.
  The PRESIDING OFFICER. There is a time limit on this amendment, and 
the time of the Senator has expired.
  Mr. DURBIN. I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. HARKIN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                Amendment No. 2380 to Amendment No. 2377

  Mr. HARKIN. Mr. President, I call for the regular order to bring up 
the amendment offered by the Senator from Illinois, Mr. Durbin, No. 
2377.
  The PRESIDING OFFICER. The Senator has that right. The amendment is 
now pending.
  Mr. HARKIN. Mr. President, I send to the desk a second-degree 
amendment to Durbin amendment No. 2377.
  The PRESIDING OFFICER. The clerk will report the amendment.
  The legislative clerk read as follows:

       The Senator from Iowa [Mr. Harkin] proposes an amendment 
     numbered 2380 to amendment No. 2377.

  Mr. HARKIN. Mr. President, I ask unanimous consent that the reading 
of the amendment be dispensed with.

[[Page 19997]]

  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

(Purpose: To amend the Higher Education Act of 1965 in order to provide 
     funding for student loan repayment for civil legal assistance 
                               attorneys)

       At the appropriate place, insert the following:
       In part B of the Higher Education Act of 1965, as amended 
     by the Higher Education Amendments of 2007, insert after 
     section 428K the following:

     ``SEC. 428L. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 
                   ATTORNEYS.

       ``(a) Purpose.--The purpose of this section is to encourage 
     qualified individuals to enter and continue employment as 
     civil legal assistance attorneys.
       ``(b) Definitions.--In this section:
       ``(1) Civil legal assistance attorney.--The term `civil 
     legal assistance attorney' means an attorney who--
       ``(A) is a full-time employee of a nonprofit organization 
     that provides legal assistance with respect to civil matters 
     to low-income individuals without a fee;
       ``(B) as such employee, provides civil legal assistance as 
     described in subparagraph (A) on a full-time basis; and
       ``(C) is continually licensed to practice law.
       ``(2) Student loan.--The term `student loan' means--
       ``(A) subject to subparagraph (B), a loan made, insured, or 
     guaranteed under part B, D, or E of this title; and
       ``(B) a loan made under section 428C or 455(g), to the 
     extent that such loan was used to repay--
       ``(i) a Federal Direct Stafford Loan, a Federal Direct 
     Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan;
       ``(ii) a loan made under section 428, 428B, or 428H; or
       ``(iii) a loan made under part E.
       ``(c) Program Authorized.--The Secretary shall carry out a 
     program of assuming the obligation to repay a student loan, 
     by direct payments on behalf of a borrower to the holder of 
     such loan, in accordance with subsection (d), for any 
     borrower who--
       ``(1) is employed as a civil legal assistance attorney; and
       ``(2) is not in default on a loan for which the borrower 
     seeks repayment.
       ``(d) Terms of Agreement.--
       ``(1) In general.--To be eligible to receive repayment 
     benefits under subsection (c), a borrower shall enter into a 
     written agreement with the Secretary that specifies that--
       ``(A) the borrower will remain employed as a civil legal 
     assistance attorney for a required period of service of not 
     less than 3 years, unless involuntarily separated from that 
     employment;
       ``(B) if the borrower is involuntarily separated from 
     employment on account of misconduct, or voluntarily separates 
     from employment, before the end of the period specified in 
     the agreement, the borrower will repay the Secretary the 
     amount of any benefits received by such employee under this 
     agreement;
       ``(C) if the borrower is required to repay an amount to the 
     Secretary under subparagraph (B) and fails to repay such 
     amount, a sum equal to that amount shall be recoverable by 
     the Federal Government from the employee by such methods as 
     are provided by law for the recovery of amounts owed to the 
     Federal Government;
       ``(D) the Secretary may waive, in whole or in part, a right 
     of recovery under this subsection if it is shown that 
     recovery would be against equity and good conscience or 
     against the public interest; and
       ``(E) the Secretary shall make student loan payments under 
     this section for the period of the agreement, subject to the 
     availability of appropriations.
       ``(2) Repayments.--
       ``(A) In general.--Any amount repaid by, or recovered from, 
     an individual under this subsection shall be credited to the 
     appropriation account from which the amount involved was 
     originally paid.
       ``(B) Merger.--Any amount credited under subparagraph (A) 
     shall be merged with other sums in such account and shall be 
     available for the same purposes and period, and subject to 
     the same limitations, if any, as the sums with which the 
     amount was merged.
       ``(3) Limitations.--
       ``(A) Student loan payment amount.--Student loan repayments 
     made by the Secretary under this section shall be made 
     subject to such terms, limitations, or conditions as may be 
     mutually agreed upon by the borrower and the Secretary in an 
     agreement under paragraph (1), except that the amount paid by 
     the Secretary under this section shall not exceed--
       ``(i) $6,000 for any borrower in any calendar year; or
       ``(ii) an aggregate total of $40,000 in the case of any 
     borrower.
       ``(B) Beginning of payments.--Nothing in this section shall 
     authorize the Secretary to pay any amount to reimburse a 
     borrower for any repayments made by such borrower prior to 
     the date on which the Secretary entered into an agreement 
     with the borrower under this subsection.
       ``(e) Additional Agreements.--
       ``(1) In general.--On completion of the required period of 
     service under an agreement under subsection (d), the borrower 
     and the Secretary may, subject to paragraph (2), enter into 
     an additional agreement in accordance with subsection (d).
       ``(2) Term.--An agreement entered into under paragraph (1) 
     may require the borrower to remain employed as a civil legal 
     assistance attorney for less than 3 years.
       ``(f) Award Basis; Priority.--
       ``(1) Award basis.--Subject to paragraph (2), the Secretary 
     shall provide repayment benefits under this section on a 
     first-come, first-served basis, and subject to the 
     availability of appropriations.
       ``(2) Priority.--The Secretary shall give priority in 
     providing repayment benefits under this section in any fiscal 
     year to a borrower who--
       ``(A) has practiced law for 5 years or less and, for at 
     least 90 percent of the time in such practice, has served as 
     a civil legal assistance attorney;
       ``(B) received repayment benefits under this section during 
     the preceding fiscal year; and
       ``(C) has completed less than 3 years of the first required 
     period of service specified for the borrower in an agreement 
     entered into under subsection (d).
       ``(g) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out the 
     provisions of this section.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $10,000,000 for fiscal year 2008 and such sums as may be 
     necessary for each succeeding fiscal year.''.

  Mr. HARKIN. I will take a minute. I understand we are getting ready 
to vote very soon. But I cleared this, of course, with Senator Durbin. 
He was fine with the second-degree amendment.
  This amendment that I offered would be to provide for loan 
forgiveness for young attorneys who go into civil legal practice, legal 
services. Now, the Durbin amendment provides for loan guarantees for 
those going into prosecution, or I should say criminal work, 
prosecuting attorneys, district attorney's offices, that type of thing, 
which is fine.
  But we also need them for civil legal attorneys, those who are going 
into legal services. They make the bottom of the ladder. I mean, even 
the district attorney's offices pay them more than legal services. So I 
think it is needed in both areas.
  Right now, with the costs of law school and with the need we have for 
legal services attorneys, this amendment is drastically needed. Right 
now, about 50 percent of the people eligible for legal services, which 
means they had household income for a family of four of $25,800 or 
less--$25,000 a year or less--only 50 percent of them were able to get 
help from a legal aid program. That is 50 percent of the people who 
actually went and sought help. You can imagine how many more there are 
out there who, for one reason or another, did not seek the help.
  Estimates are that closer to 80 percent of low-income Americans have 
unmet civil legal needs. Right now there is 1 legal aid attorney for 
6,800 low-income Americans. One legal services attorney for every 6,800 
low-income Americans. Compare that to 1 attorney for every 525 middle-
income Americans.
  Well, again, the key reason for this is the inability of the legal 
aid programs to recruit and retain attorneys. Given the financial 
realities, many law graduates who are able to take positions with legal 
aid leave after 1 or 2 years. One Midwestern program cited a turnover 
rate of 60 percent over a 2-year period of time, with an average tenure 
for new attorneys of 17 months.
  So what my amendment does is it builds on the existing loan repayment 
and retention programs for Federal prosecutors and 29 other Government 
agencies, including the Department of Justice and the Congress. All we 
are saying is, if we are going to do it for people who come to work 
here or the Department of Justice, why not for civil legal aid 
attorneys?
  This would provide for up to $6,000 a year in loan repayments. You 
would have to sign it, you would have to be at least 3 years as a legal 
services attorney to get that, with a maximum lifetime benefit of 
$40,000. The amendment authorizes up to $10 million to do this. We know 
how many there are. We are only talking about 1,200 nationwide. So we 
know it does not cost a lot of

[[Page 19998]]

money, but it is sorely needed. Time and again, people who have unmet 
civil legal needs, whether it is child custody, divorce proceedings, it 
could be landlord-tenant problems, these people do not have access to 
the civil legal system. Then they take the law into their own hands, 
they do something else.
  By providing good legal services to low-income people, we basically 
keep people from doing things they otherwise would not do if they had 
some legal help available to them. People get desperate. I can tell you 
this, that the strongest bulwark against domestic violence is legal aid 
attorneys.
  What happens is, when someone is in an abusive relationship and they 
need legal help and they cannot afford it, that is when you get 
problems. Now, I can speak about this from experience. I started out my 
life as a legal services attorney. That is what I did when I got out of 
law school.
  I thought it was a great opening. I thought it was a great thing to 
do. You get the cases no one else takes. You get people who are at the 
end of their rope. Maybe they have tried to get legal help and they 
cannot get it anywhere else. You are sort of the last hope they have 
for settling something civilly.
  I can tell you from my time as a legal services attorney, we had a 
lot of people who got in a lot of trouble simply because they did not 
either know we were there or they could not access the civil legal 
system. You have domestic violence. Some people go to jail. Or you have 
child custody battles that go on.
  I have had landlord-tenant cases where people are at the end of their 
rope, maybe they have a dispute with the landlord, they cannot get it 
resolved, so they sort of take the law into their own hands and do 
something rash.
  To me, while it is important to encourage young lawyers to get into 
criminal prosecution, I think it is equally as important for us to 
provide some help for young lawyers who want to be legal services 
attorneys.
  I see the Senator from Vermont who has been a strong supporter of our 
legal services program. I know of his commitment to this. I yield to 
the Senator.
  Mr. SANDERS. I rise in support of the Senator's amendment. If we are 
a nation of equal justice under the law, then low-income people must 
have legal representation. Legal aid does a phenomenally good job. In 
Vermont, the wage scale for legal aid workers is embarrassingly low. 
Any young person who graduates law school with the kind of debt we are 
talking about would find it almost impossible to work at a legal aid 
salary. We should be supportive of legal aid. I strongly support the 
Senator's amendment, and I thank him for offering it.
  Mr. HARKIN. I thank the Senator from Vermont. Check with the American 
Bar Association, with the State bar associations; they all support 
legal services. They know this is one way in which we can provide, as 
the Senator from Vermont said, access to equal justice under the law. I 
can remember when I was a legal services attorney in the 1970s, the 
case files we received. I mean, there were so many. We were there late 
at night. We were actually working weekends on some of these cases. You 
feel that maybe you are not serving their interest well because you 
have so many cases and so many case files.
  I appreciate the remarks of the Senator. I hope we can get good 
support on the vote for this amendment.
  The PRESIDING OFFICER. The time of the Senator has expired.
  Who yields time?


                Amendment No. 2381 to Amendment No. 2369

  Mr. KENNEDY. Mr. President, I send up a second-degree amendment to 
Coburn amendment No. 2369 to the desk and ask for its immediate 
consideration.
  The PRESIDING OFFICER. If the Senator would withhold, it requires 
unanimous consent to send up a second-degree amendment to that 
amendment at this time.
  Mr. KENNEDY. Mr. President, I call for the regular order with respect 
to the Coburn amendment.
  The PRESIDING OFFICER. Is there objection to returning to the Coburn 
amendment? Without objection, it is so ordered.
  The clerk will report the amendment.
  The legislative clerk read as follows:

       The Senator from Massachusetts [Mr. Kennedy] proposes an 
     amendment numbered 2381 to amendment No. 2369.

  The amendment is as follows:

       Strike all after the first word and insert the following:

     114. RESTRICTION ON USE OF FEDERAL FUNDS

       (1) No Federal funds received by an institution of higher 
     education may be used to pay any person for influencing or 
     attempting to influence an officer or employee of any agency, 
     a Member of Congress, an officer or employee of Congress, or 
     an employee of a Member of Congress in connection with any 
     Federal action described in paragraph (2) of this section.
       (2) The prohibition in paragraph (1) of this section 
     applies with respect to the following Federal actions:
       (a) the awarding of any Federal contract;
       (b) the making of any Federal grant;
       (c) the making of any Federal loan;
       (d) the entering into of any cooperative agreement;
       (e) the extension, continuation, renewal, amendment, or 
     modification of any Federal contract, grant, loan, or 
     cooperative agreement.

  Mr. KENNEDY. Mr. President, I don't intend to press this amendment 
this evening. I have talked to the Senator from Oklahoma. I would hope 
we would have a chance over the evening to work with him to address the 
substantive matter of his amendment. I don't intend that we will have a 
vote on that amendment this evening, but for the benefit of the 
membership, I wanted to be able to at least file this amendment. I have 
talked to the Senator from Oklahoma earlier, about 45 minutes ago. We 
had a good conversation. He was working on some language. But we do 
believe that we are probably getting fairly close to a vote on the 
Brown amendment.
  We wanted to be able to at least indicate to the membership that 
there may very well be a vote tomorrow. Hopefully, we will have a 
chance to work through the evening and get a chance to work that 
amendment out.
  The reason I offer this amendment is, I agree with the Senator from 
Oklahoma that Federal funds should not be used for lobbying. That is 
the current law. I would support the clarifying language in the law 
that prevents it. But there are very important reasons for institutions 
to communicate with Members of Congress, and I am afraid this amendment 
would have the unintended consequence of restricting universities and 
colleges from advocating for research grants and protections for their 
students. It would make it possible for universities to comment on 
Federal regulations of the Department of Education. It may very well 
have impact regarding communications with Members of Congress whether 
we ought to increase NIH funding. It would require that universities 
use private or foundation dollars to share findings with Congress, and 
this would especially harm small institutions, rural institutions, 
historically Black colleges, and other institutions with limited 
resources.
  I am worried that the Senator's amendment goes too far. It is 
important we make very clear that Federal funding should not be used 
for lobbying, and if we need to do more to ensure that it is enforced, 
I am happy to work with the Senator from Oklahoma to do so. That is 
what my second degree amendment does. It is a restatement that no 
Federal funds received by any institution may be used to pay any person 
for influencing or attempting to influence an officer or employee or 
any agency, a Member of Congress.
  It says:

       No federal student aid funding may be used to hire a 
     registered lobbyist or pay any person or entity for securing 
     an earmark.

  Then it continues: Any person who makes a prohibited expenditure 
shall be subject to a civil penalty of not less and not more than a 
million dollars, and the Secretary of Education shall take such actions 
as necessary to ensure these provisions.
  I would hope as part of an enforcement effort, that we would get a 
statement or attestation of colleges that they are not using these 
funds and report back to the Congress if universities are not doing it. 
We will try to work with the Senator from Oklahoma,

[[Page 19999]]

but I wanted to at least include that second degree as we work with him 
through the evening.
  That is where we are.
  The PRESIDING OFFICER. The Senator from Wyoming.
  Mr. ENZI. Mr. President, so tomorrow we will be voting on whatever is 
needed to be voted on on Coburn, and then we will be voting on Durbin 
and then final passage, but we also have the second-degree amendment 
that Senator Harkin has offered. Does that preclude anybody from 
putting in more second-degree amendments?
  I thought we had that whole issue done last week when we dealt with 
loan forgiveness. I think that would have been a more appropriate place 
to deal with loan forgiveness. Now we have some special cases. I doubt 
that anybody in public service doesn't consider themselves to be a 
special case. There are some people who consider themselves to have 
spent a lot of money.
  I guess people can turn in amendments, second-degree amendments, for 
virtually any profession they want by tomorrow morning, and we will 
vote on each of those separately.
  The PRESIDING OFFICER. The Senator from Massachusetts.


                           Amendment No. 2382

  Mr. KENNEDY. Mr. President, I have the managers' amendment at the 
desk. I ask for its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  Mr. KENNEDY. I ask unanimous consent that reading of the managers' 
amendment be dispensed with and the amendment be adopted.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The amendment (No. 2382) was agreed to.
  Mr. KENNEDY. Mr. President, I ask unanimous consent that at 5:40 
today, the Senate--would the Senator want 1 minute? Would that be 
agreeable, 1 minute on each side on the Brown amendment?
  I ask unanimous consent that at 5:41 today the Senate proceed to vote 
in relation to the Brown amendment No. 2376; that no amendments be in 
order to the Brown amendment prior to the vote; and that time in the 
next 2 minutes be equally divided.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Who yields time?
  The Senator from Ohio.
  Mr. BROWN. Mr. President, I ask for support for the Brown amendment. 
We know in the last 5 years the cost of public education has gone up 
for a 4-year degree 53 percent. We know the cost of private education 
for a 4-year degree has gone up 28 percent. We also know that wages 
have gone up only 3 to 4 percent for the average person during this 5-
year period. The Federal Government is not keeping up with helping 
students get the opportunity to go to college. We have seen students 
have no alternative. They have exhausted what they can do with Pell 
grants. They have exhausted what they can do either through the direct 
loan program or other federally backed programs. The fastest growing 
part of their student loan availability is going to private 
institutions with a 16- to 18-percent interest rate. This amendment is 
no cost to the Government. It competes with banks.
  We reauthorize every 5 to 7 years the Higher Education Act. This is 
an opportunity we should not pass up. The problem is only getting 
worse. I ask for support of the Brown amendment.
  The PRESIDING OFFICER. Who yields time in opposition?
  The Senator from Wyoming.
  Mr. ENZI. Mr. President, as Senator Gregg and I have both explained, 
this amendment is very problematic. It has not been to a committee. It 
has not been heard. There has been no vote on it. It creates another 
loan program. It creates a different loan program than any we have ever 
done because this says the Secretary of Education will set the loan 
rate and the requirements on it. We have never had that kind of a 
situation.
  Most problematic, the system of education in this country is 
successful because it is a partnership between the private and public 
sectors. This one moves it all to private. It off-balances the direct 
loan versus the private loan market. We should not be supporting this 
amendment. The Secretary is not in a position to make the kind of 
decisions this calls for. We do have to have a private market. This 
would eliminate it.
  We also have a previous example of where this kind of loan was used 
back in the 1970s, but that was because the interest rates were about 
21 percent in the regular market, and the Secretary set it at--well, it 
wasn't the Secretary, but the loan rate wound up being set at 9 
percent. People borrowed it for everything except education.
  I ask Members to defeat the amendment.
  The PRESIDING OFFICER. The question is on agreeing to amendment No. 
2376.
  Mr. BROWN. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. DURBIN. I announce that the Senator from Delaware (Mr. Biden), 
the Senator from New York (Mrs. Clinton), the Senator from Connecticut 
(Mr. Dodd), the Senator from South Dakota (Mr. Johnson), the Senator 
from Arkansas (Mrs. Lincoln), the Senator from Illinois (Mr. Obama), 
and the Senator from Rhode Island (Mr. Reed) are necessarily absent.
  Mr. McCONNELL. The following Senators are necessarily absent: the 
Senator from Mississippi (Mr. Lott) and the Senator from Arizona (Mr. 
McCain).
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 38, nays 53, as follows:

                      [Rollcall Vote No. 273 Leg.]

                                YEAS--38

     Akaka
     Baucus
     Bingaman
     Boxer
     Brown
     Cantwell
     Cardin
     Casey
     Conrad
     Dorgan
     Durbin
     Feingold
     Feinstein
     Harkin
     Inouye
     Kennedy
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     McCaskill
     Menendez
     Mikulski
     Murray
     Nelson (FL)
     Pryor
     Reid
     Rockefeller
     Sanders
     Schumer
     Stabenow
     Tester
     Whitehouse
     Wyden

                                NAYS--53

     Alexander
     Allard
     Barrasso
     Bayh
     Bennett
     Bond
     Brownback
     Bunning
     Burr
     Byrd
     Carper
     Chambliss
     Coburn
     Cochran
     Coleman
     Collins
     Corker
     Cornyn
     Craig
     Crapo
     DeMint
     Dole
     Domenici
     Ensign
     Enzi
     Graham
     Grassley
     Gregg
     Hagel
     Hatch
     Hutchison
     Inhofe
     Isakson
     Kyl
     Lugar
     Martinez
     McConnell
     Murkowski
     Nelson (NE)
     Roberts
     Salazar
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stevens
     Sununu
     Thune
     Vitter
     Voinovich
     Warner
     Webb

                             NOT VOTING--9

     Biden
     Clinton
     Dodd
     Johnson
     Lincoln
     Lott
     McCain
     Obama
     Reed
  The amendment (No. 2376) was rejected.
  Mr. ALEXANDER. Mr. President, I would ask through the Chair to the 
managers, would it be appropriate now to speak on the bill or would 
they prefer to go ahead with other business that they have?
  The PRESIDING OFFICER. The Senator from Tennessee is recognized.
  Mr. ALEXANDER. Mr. President, I ask unanimous consent to speak for up 
to 20 minutes and that following me, Senator Menendez be allowed to 
speak for----
  Mr. MENENDEZ. For about 15 minutes.
  Mr. ALEXANDER. For 15 minutes.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  Mr. ALEXANDER. Mr. President, I congratulate Senator Kennedy and 
Senator Enzi and the members of the Health, Education, Labor, and 
Pensions Committee for their work on this bill. I have been around 
awhile, but I have not been in the Senate for very

[[Page 20000]]

long, and we have been working on this bill since I came to the Senate, 
which was 4 years ago. It needed to be reauthorized some time ago. But 
similar to some other things, it has gotten a little better with age, 
and it is a very good bill.
  Although we have been working on this bill for some time, I believe 
it has gotten better over time. It has a number of excellent provisions 
in it. There is one major concern I have which I intend to speak on. 
Let me say what that is at the outset before I begin to talk about what 
I like about the bill. My late friend, Alex Haley, used to say, ``Find 
the good and praise it,'' and I can do that with this bill, but I do 
have one concern. My concern is the creeping regulation of higher 
education.
  I believe the single most important thing we could do to help improve 
excellence in higher education in America, which is already pretty 
good--the best in the world--is to deregulate, not add more federal 
regulations. Unfortunately, with this bill, we significantly add to the 
stack of regulations that college and university presidents all over 
America have to wade through every year in order to accept students who 
receive Federal grants and loans.
  Let me talk about some of the good things about this bill. In the 
first place, it was an excellent decision to separate this piece of 
legislation from the work we acted on last week--what we call the 
reconciliation bill. This reauthorizes the Higher Education Act for the 
next 5 years, and it has separate provisions which deserve separate 
attention. For example, it increases the amount of Pell grants from 
$4,300 to $6,300 over the next 5 years. Pell grants are for the lowest 
income students. They don't help the middle-income families very much 
because the dollars don't get up to that level. Those families are 
eligible for other aid from universities and other grants and loans. 
But $6,300 for a Pell grant is a significant amount of money.
  For example, if you go to Harvard, it doesn't come close to paying 
the cost, but if you go to the University of Tennessee, it pays almost 
the entire tuition for the year. In fact, if you go to the University 
of Tennessee with a Pell grant, you are very likely to show up with 
what we call a HOPE scholarship, which also pays for tuition. So you 
would start off with a HOPE scholarship of--I think the amount is about 
$4,000--plus your $6,300 from the Pell grant, if you needed that 
additional amount of money. So the Pell grant would be increasing from 
its current level of $4,310 to $6,300. If there are families across the 
country who are watching our debate and thinking they can't go to 
college, it is important for them to know that the community colleges 
of America cost several hundred dollars a quarter, and that the great 
State universities of America typically cost $5,000 or $6,000 or $7,000 
a year in tuition. Now, that does not include living expenses, but we 
all pay living expenses, whether we are in college or we are not in 
college.
  This decision to move up the Pell grant to $6,300 is a big help. I 
hope it sends a signal across this country to families without means 
that their son or their daughter may start their higher education, for 
example, at a community college for 2 years, living at home and paying 
a few hundred dollars and letting the Pell grant pay for the total cost 
of the tuition, the total cost of the books. So there will be zero 
charge for that family for 2 years, and then after 2 more years, go on 
to a State University, where the tuition might not be very much more 
than the Pell grant. In addition, the Pell grants will be even larger 
for students who are majoring in math, science, critical foreign 
languages, and thereby encouraging students to pursue those fields.
  This Congress is taking a number of steps to try to refocus our 
country's attention on our brain power advantage, to make sure we keep 
that so we can keep our good jobs from going overseas. Senator Kennedy 
and Senator Enzi and Senator Frist last year changed the law and 
created the SMART grants to focus on our competitiveness, and the 
increase to the Pell grants do that significantly more in this 
legislation.
  In addition, this legislation, in an overdue way, recognizes the 
importance of a year-round Pell grant. Many people still have in their 
mind the idea of the traditional college student on the traditional 
campus. That life has changed. Many of the students who take Pell 
grants have to work. They are older. They may be moms going back to 
school to get the training to get a better job or a dad doing the same, 
and they may not have time to take the summer off, or that might not 
fit their schedule. The way the law has been, they couldn't get the 
Pell grant, if there were, say, three quarters, they could only get it 
for two. This says that--and Senator Clinton, I congratulate her for 
working on this as well. A number of Senators have worked on making the 
Pell grant a year-round opportunity.
  I am also delighted about legislation I introduced, again with 
Senator Clinton, to expand Teach For America. Teach For America 
attracts some of the brightest young men and women in our country who 
have a passion for serving. There are many ways to serve our country. 
Some of our most valued are in Iraq and Afghanistan. Others are in the 
inner city helping children who haven't had a chance to learn to read, 
to learn to compute, and learn to have a chance in this country. As 
Lyndon Johnson used to say, we want people to be equal at the starting 
line, but we need to help some people get to that starting line, and 
through Teach For America, young men and women can do just that. This 
will build a corps of young college graduates who will spend 2 years in 
those schools, and it will expand the group of influential alumni of 
Teach For America who care about our public schools.
  I actually think that what may end up being more important about 
Teach For America than their service for 2 years in the inner city 
schools is that we will expand these young men and women who will grow 
to be the leaders of this country in a relatively short period of time. 
Then they will always have within their personal missions the idea of 
giving every student an opportunity to go to a first-class public 
school. Having a corps of Americans who value education and who value 
public schools, especially, will do our country more good than almost 
anything I can think of.
  Mr. President, I believe we have the best colleges and universities 
in the world. We don't just have some of them, we have almost all of 
them. They have their problems, but we should recognize the asset that 
they are. One of my primary goals as a Senator is to relieve the 
burdensome, oppressive paperwork that the Federal Government places 
upon our colleges and universities, freeing up scarce dollars to spend 
on improving quality teaching and research rather than paperwork.
  The higher education system--and I want to be careful saying this 
because I don't want to drive anyone away from this idea--is a 
Republican's dream, a conservative's dream. We have 6,000 autonomous 
institutions. Some are public, some are private. Some are religious, 
some are secular. Some are historically Black, some are Native 
American, some are Jewish. Some are in cities. There is Harvard and 
there is the Nashville Auto Diesel College. There are 6,000 autonomous 
institutions that compete. We don't give money directly to those 
institutions, for the most part. We give the money to the students, and 
students take those vouchers--one-half of America's college students 
attend our autonomous institutions with a Federal grant or loan that 
helps them to pay for college, and they are flat out vouchers.
  I have introduced several times a Pell grant for kids, saying that is 
what a voucher is for K-12, but we will reserve that discussion for 
another day.
  Since World War II, quite by accident, we have said to the world: 
Here is the way we organize our education. It is a marketplace of 6,000 
institutions, where (1) colleges compete for students, (2) Government 
money follows those students to the institution of their choice, and 
(3) the Federal research money is, for the most part, competed for in 
peer-reviewed efforts. The rest of the world is scrambling to catch up 
with our system.

[[Page 20001]]

  In China, they are deregulating. In France, they are deregulating and 
creating a more competitive system and trying to emulate the model that 
we have.
  So what concerns me about our Government's attitude toward higher 
education is the number of forms each institution has to fill out. I 
have a stack of forms this tall in my office. I didn't bring it here to 
the Senate floor. Every institution has to fill that out in order to 
accept students who bring with them Federal grants or loans, which are 
almost all of the students. That means the small church-related schools 
have to hire somebody else. They have to go through all that. The 
President of Stanford--not a small, church-related school--said 7 out 
of 10 cents of every tax dollar is spent on complying with Government 
regulations.
  Would it not be better if we allowed Stanford and the small schools 
and the Nashville Auto Diesel College, as well as Harvard, to use more 
of their money to help students and less to comply with paperwork?
  With passage of this bill, we will require the Advisory Committee on 
Student Financial Aid to review regulations imposed under the act and 
report to the Secretary and Congress ways to reduce regulation, 
streamline procedures, and simplify for the benefit of students. That 
will be one small force moving in the right direction.
  It would create a discretionary grant program for an institution of 
higher education to maintain a Web site that keeps track of Federal 
regulations that have an impact on institutions of higher education. A 
small, church-related college might only have to hire a person who 
spends half of his or her time keeping up with the rules and 
regulations because the Web site might have done it for them.
  We require the Secretary to develop an annual compliance calendar for 
disclosures required by the Higher Education Act.
  These provisions might seem not very important, but I can guarantee 
you, as a former president of a university, they can make a lot of 
difference. I would like very much to have spread out before me a 
calendar from the Government that said we have listed all of the rules 
and regulations and forms and papers that you have to file. That would 
mean I knew what it was and that would save me a lot of time in 
figuring it out.
  Despite that good news, I am afraid there are, nevertheless, problems 
in this bill. Currently there are 24 reporting categories and 74 
reporting requirements with hundreds of data points. That is today, 
before this bill passes. My staff has identified 26 new categories and 
over 100 new reporting requirements imposed on higher education with 
this law, and that is even before the department starts its 
regulations.
  So I hope we can figure out a way to create competitive forces in 
favor of deregulation. It is as bad on our side of the aisle as it is 
on that side of the aisle. Very often, my Republican friends say, for 
example, prices at colleges have gone up, so let's put on price 
controls.
  When the pilgrims arrived in Massachusetts, they said we know what 
religious oppression is, so let's practice it ourselves. We are 
supposed to be for markets and choice and less Federal regulation. So 
let's apply that to Federal higher education.
  I have worked on a number of provisions in the bill, and I thank 
Senators Kennedy and Enzi for permitting me to do that, working with 
others, including Senators Gregg and Reed, and I have worked on 
provisions that have been included that simplify the application form 
for students who apply for grants or loans.
  As I mentioned, I worked with Senator Clinton to help allow students 
who have Pell grants to use them year-round so they can finish earlier 
and get back to work and back with their families, rather than the 
antiquated requirement that they may only use them part of the year. I 
mentioned the compliance calendar to make it simpler for colleges, and 
the Teach for America plan, which Senators Harkin and Reid and others 
have cosponsored.
  There is an accountability research grant and a state data system 
pilot project. I thank Secretary Spellings for agreeing with these. As 
a result of her study of higher education, which pointed out a number 
of important things, we do have a fine system of higher education, but 
it needs to be challenged if we are going to keep our advantage. I felt 
that the Secretary, in her recommendations, was going too far in 
federalizing higher education, whether it be transfer of credit 
provisions, or whether it might be proposals mandated from Washington 
about student accountability. I thought that was a good goal but the 
wrong way to go about it.
  So Secretary Spellings has agreed to step back and focus instead on 
challenging our State boards of education and our college boards of 
trustees and our university presidents and our Governors and 
legislators to do their own on accountability. We are not going to kick 
it to Washington, DC, and let us conduct oversight of how they are 
doing their jobs, rather than to try to impose more of the one-size or 
a few-sizes-fit-all ideas from Washington. A part of doing that would 
be these new grants from the Department.
  In this bill, we have provided grants from the Secretary to create 
new measures for assessing student achievement in higher education. 
There is a difference in the Harvard classics department and the 
Nashville Auto Diesel College. I mention that because Harvard classics 
might be the best department for classics. I know the Nashville Auto 
Diesel College is the best training for mechanics. There is no need for 
us to figure out what is the appropriate accountability at those 
institutions.
  With great respect to the chair and Senators Kennedy and Enzi and the 
Department of Education, the institutions of higher education know more 
about accountability in higher education. We ought to make sure they 
are doing their job, not try and do it for them from here.
  Mr. KENNEDY. Will the Senator yield for a consent agreement?
  Mr. ALEXANDER. I am happy to.
  Mr. KENNEDY. I believe I have time remaining. I ask unanimous consent 
that the remaining time be given to the Senator from New Jersey--I 
believe I have 5 minutes left--and I ask that he be given an additional 
10 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ENZI. Mr. President, I yield back the remainder of my time.
  The PRESIDING OFFICER. The Senator's time is yielded back.
  Mr. ALEXANDER. Mr. President, I thank the Senator from Massachusetts 
and the Senator from Wyoming. Another example of what I would call the 
propensity to federalize education is to regulate the transfer of 
credit policy that individual institutions have. If we are going to 
have a marketplace, and if students are going to have choice, then it 
is the job of the students to find out from the colleges and 
universities what their rules are. Otherwise, we go to a European 
system or a Chinese system, or a system like our K-12 system where we, 
knowing all, tell everybody what to do, what the transfer of credit 
policies might be.
  So I strongly resist saying that the Federal Government ought not to 
have anything to say about whether the Nashville Auto Diesel College 
ought to be required to accept a transfer of credit from the Harvard 
classics department. I am not sure that a graduate or student in 
Harvard classics would know anything about a Nissan engine in 
Nashville, and vice versa. I am pretty sure we don't need to interfere 
with that, particularly if so much of the excellence in our system 
comes from this competition, and these autonomous institutions and this 
marketplace that allows students, followed by Government money, to 
choose and allows researchers to compete to see who deserves the money.
  So my hope is that as time goes on we can have a serious discussion 
in the Health, Education, Labor, and Pensions Committee and in the 
Education and Labor Committee in the House about deregulation of higher 
education. We all have good ideas about what to do. Some will be voted 
on as amendments tomorrow. If we all impose our good ideas from here, 
then they add up

[[Page 20002]]

to another stack like this, and our higher education system begins to 
be smothered.
  I have had the privilege of working at several levels in higher 
education. When I was president of the University of Tennessee, I had a 
lot of oversight. The Governor was chairman of the board. The 
legislature approved the largest share of money that I received. I had 
a board of trustees to which I had to respond. There was a faculty 
council to which I paid a lot of attention. In terms of student 
accountability, the professors graded students on a regular basis. The 
dean graded the professors. The trustees, the president, the provost, 
the Tennessee Higher Education Commission, the Governor, and the 
legislature all had their say. There is plenty of supervision of higher 
education based on my experience. So we need to be careful. We have 
been wise since World War II with our loans and grants that half of 
Americans use to go to college to say here is the money.
  If the college is accredited, a student can take their choice. You 
may go to Notre Dame or to the community college down the street. You 
may go to the University of Tennessee or to Rhode Island. That is your 
choice, as long as it is accredited. Of course, some mistakes are made. 
I am sure that at the fringes some colleges are teaching goofy courses. 
Some schools are better than others.
  Overall, we don't have any enterprise in America that today has 
consistently outperformed the rest of the world as well as our system 
of higher education--not our automobile business, not our aluminum 
business, and not our K-12 system. Even the Senate rarely raises above 
the level of the Baghdad Parliament when it comes to getting consensus 
on the war in Iraq. But the system of higher education, with all its 
sometimes stuffiness and its disagreeable political correctness, and 
even with the lengthy vacations and even with more tenure than probably 
is deserved, as a whole, is by far the finest in the world; and more 
regulation, as a whole, will make it worse, not more excellent.
  There is one other provision I want to mention. I am glad the 
committee included this. It is a statement about the protection of free 
speech.
  Willie Morris, who wrote the ``North Toward Home'' about his days in 
Mississippi and the University of Texas and New York, wrote an eloquent 
statement about how the American Association of University Presidents 
rose up about the political correctness at the time he was a student. 
That was in the 1950s--I guess early 1960s. At that time, the political 
correctness in part of Texas, or all of Texas, was segregationist, very 
conservative, and oppressive to those who had different points of view.
  Today, the shoe is often on the other foot. Some deny that, but we 
know that is true. There are not many conservative speakers at college 
graduation ceremonies.
  The PRESIDING OFFICER. The Senator's time has expired
  Mr. ALEXANDER. I ask unanimous consent for 3 more minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ALEXANDER. Often legitimate speakers with different points of 
view are booed and not welcomed in the academic environment.
  I testified about this situation before Secretary Spellings' 
committee on higher education. I ask unanimous consent to have printed 
in the Record following my remarks my testimony in Nashville last year.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (See exhibit 1.)
  Mr. ALEXANDER. Mr. President, I hope my friends in the university 
community will see in me someone who values higher education, who 
defends the importance of it in our society, who is working hard to 
keep our brainpower advantage in the world marketplace, who supports 
funding it generously, but who also believes that the greatest 
Achilles' heel of our system of higher education today is political 
correctness and a failure to take it seriously.
  Colleges and universities are places where people ought to be allowed 
to say even outrageous things from the right and from the left. It is 
not a free and academic environment if you are only allowed to say 
outrageous things from the left.
  Without belaboring that point, I conclude my remarks by expressing my 
appreciation once more to Senators Kennedy and Enzi. This is a first-
rate bill. It will help students. It will help our country. It has a 
great many good ideas in it, and I hope there are others in this body 
and in the House of Representatives who will join me in recognizing 
that along with political correctness, the greatest threat to quality 
of higher education, in my view, is overregulation by the Federal 
Government, and perhaps over time we can find some sensible ways to 
give it a little more freedom from this big stack of regulations that 
piled up over the years.
  I thank the Chair and yield the floor.

                               Exhibit 1

  Remarks of Senator Alexander to Commission on the Future of Higher 
                    Education, Nashville, Tennessee

       Thank you for the time you are giving to this Commission's 
     work, and thank you for inviting me to testify.
       I've seen higher education from many sides, so I'm 
     sometimes asked, ``What's harder: being governor of a State, 
     a member of a president's cabinet, or president of a 
     university?''
       My answer is, ``Obviously, you've never been president of a 
     university, or you wouldn't ask such a question.''
       I have six suggestions for recommendations you might make:
       First, I hope you will urge the Administration that 
     appointed you to make the National Academies' ``Augustine 
     Report'' a focus of the President's State of the Union 
     address in January and of his remaining three years in 
     office.
       This 20-point, $10 billion a year report is the National 
     Academies' answer to the following question that Senator Pete 
     Domenici, Senator Jeff Bingaman and I posed to them in May: 
     ``What are the ten top actions, in priority order, that 
     federal policy makers could take to enhance the science and 
     technology enterprise so the United States can successfully 
     compete, prosper and be secure in the global community of the 
     21st century?'' The report was written by a distinguished 
     panel of business, government and university leaders headed 
     by Norm Augustine, former CEO of Lockheed Martin.
       As 2005 ends, we Americans--who constitute just five 
     percent of the world's population--will once again produce 
     nearly thirty percent of the world's wealth.
       Most of this good fortune comes from the American advantage 
     in brainpower: an educated workforce and our science and 
     technology. More Americans go to college than in any other 
     country. Our universities are the world's best, attracting 
     more than 500,000 of the brightest foreign students. No 
     country has national research laboratories to match ours. 
     Americans have won the most Nobel Prizes in science, and have 
     registered the most patents. We have invented the Internet, 
     the automobile and the computer chip, television and 
     electricity. From such advances have come a steady flow of 
     the world's best paying jobs.
       As one scientist has said, we don't have science and 
     technology because we're rich. We're rich because we have 
     science and technology.
       Yet I am worried that America may be losing its brainpower 
     advantage. Most Americans who travel to China, India, 
     Finland, Singapore and Ireland come home saying, ``Watch 
     out.''
       The Augustine panel found I am right to be worried:
       Last year, China trained 500,000 engineers, India 200,000, 
     while the U.S. trained 70,000.
       For the cost of one chemist or engineer in the U.S., a 
     company can hire five chemists in China or 11 engineers in 
     India.
       China is spending billions to recruit the best Chinese 
     scientists from American universities to return home to build 
     up Chinese universities.
       They also found signs that we are not keeping up:
       U.S. 12th graders performed below the international average 
     of 21 leading countries on tests of general knowledge in 
     math.
       In 2003, only three American companies ranked among the top 
     10 recipients of new U.S. patents.
       Of 120 new chemical plants being built around the world 
     with price tags of $1 billion dollars or more, one is in the 
     U.S. and 50 are in China.
       Among the Augustine Report's 20 recommendations were:
       Recruit 10,000 new science and math teachers with 4-year 
     scholarships and train 250,000 current teachers in summer 
     institutes.
       Triple the number of students who take Advanced Placement 
     math and science exams.
       Increase Federal funding for basic research in the physical 
     sciences by 10 percent a year for 7 years.

[[Page 20003]]

       Provide 30,000 scholarships and graduate fellowships for 
     scientists.
       Give foreign students who earn a PhD in science, 
     engineering and computing a ``green card'' so they can live 
     and work here.
       Give American companies a bigger research and development 
     tax credit so they will keep their good jobs here instead of 
     moving them offshore.
       Some may wince at the $10 billion a year price tag. I 
     believe that the cost is low. America's brainpower advantage 
     has not come on the cheap. This year, one-third of State and 
     local budgets go to fund education. Over 50 percent of 
     American students have a Federal grant or loan to help pay 
     for college. The Federal government spends nearly $30 billion 
     per year this year on research at universities and another 
     $34 billion to fund 36 national research laboratories.
       Just this year, Congress has authorized $75 billion to 
     fight the war in Iraq, $71 billion for hurricane recovery, 
     $13 billion in increased Medicaid spending and $352 billion 
     to finance the National debt. If we fail to invest the funds 
     necessary to keep our brainpower advantage, we'll not have an 
     economy capable of producing enough money to pay the bills 
     for war, Social Security, hurricanes, Medicaid and debt.
       Aside from the war on terror, there is no greater challenge 
     than maintaining our brainpower advantage so we can keep our 
     good paying jobs. That is the surest way to keep America on 
     top.
       I have attached an executive summary of the Augustine 
     Report to my comments.
       Second, I suggest that you recommend that presidents of the 
     United States appoint a lead adviser to coordinate all of the 
     Federal government responsibilities for higher education.
       My greatest regret as U.S. Education Secretary was that I 
     did not volunteer to be that lead person. Secretary 
     Spellings, with the appointment of this commission, has 
     assumed at least some of that responsibility. But the 
     authority of the Secretary of Education over higher education 
     is somewhat like the authority of the U.S. Senate majority 
     leader or a university president: overestimated. Almost every 
     agency of the federal government has something to do with 
     higher education, tens of billions of taxpayer dollars are 
     invested every year and someone should be looking at all of 
     this in a coordinated way.
       Third, I urge you to join me on the bandwagon for 
     deregulation of higher education.
       The greatest threat to the quality of American higher 
     education is not underfunding. It is overregulation. The key 
     to the quality of our higher education system is that it is 
     NOT a system. It is a marketplace of 6,000 autonomous 
     institutions. Yet, thanks largely to the last two rounds of 
     the Federal Higher Education Act, each one of our 6,000 
     higher education institutions that accepts students with 
     Federal grants and loans must wade through over 7,000 
     regulations and notices. The president of Stanford has said 
     that seven cents of every tuition dollar is spent on 
     compliance with governmental regulations.
       I have attached to my testimony remarks I made to the U.S. 
     Senate in June when I introduced the Higher Education 
     Simplification and Deregulation Act of 2005, much of which 
     was incorporated in the Higher Education Act reauthorization 
     bill this year.
       Fourth, I urge the Congress to overhaul the Medicaid 
     program and free states from outdated federal court consent 
     decrees so that states may properly fund colleges and 
     universities.
       You have two charts before you that tell the story. 
     Nationally, during the five year period from 2000 to 2004, 
     State spending for Medicaid was up 36 percent, while State 
     spending for higher education was up only 6.8 percent. As one 
     result, tuition was up 38 percent.
       The story in Tennessee was worse. Medicaid spending was up 
     71 percent, while higher education was up only 10.5 percent, 
     and tuition was up 43 percent.
       By the way, during this same four year period, Federal 
     spending for higher education was up 71 percent.
       When I left the governor's office in 1987, Tennessee was 
     spending 51 cents of each State tax dollar on education and 
     16 cents on health care, mainly Medicaid. Today it is 40 
     cents on education and 26 cents on health care, mainly 
     Medicaid.
       To give governors and legislatures the proper authority to 
     allocate resources, Congress should give States more 
     authority over Medicaid standards and more ability to 
     terminate outdated Federal court consent decrees that remove 
     decision-making authority from elected officials.
       In addition to the two charts on spending trends, I have 
     attached my remarks when Senator Mark Pryor of Arkansas and I 
     introduced the Federal Consent Decree Fairness Act.
       Fifth, I hope you will put a spotlight on the greatest 
     disappointment in higher education today: colleges of 
     education. ``At a time when America 's schools face a 
     critical demand for effective principals and superintendents, 
     the majority of programs that prepare school leaders range in 
     quality from inadequate to poor.'' Those are not my words, 
     but those of a new report by Arthur Levine, the president of 
     Teachers College, Columbia University. Or ask Richard Light, 
     the Harvard professor, who is working with university 
     presidents trying to find and inspire a new generation of 
     leaders for our colleges of education. Sometimes colleges of 
     education are even roadblocks to the very reforms they ought 
     to be championing. In 1983, when I asked colleges of 
     education to help me find a fair way to pay teachers more for 
     teaching well (which not one State was doing at the time), 
     they said it couldn't be done. So we invented our own system 
     for thousands of teachers, with virtually no help from the 
     very people who are in business to figure out such things. 
     And still today, despite the good work of Governor Hunt and 
     others, the lack of differential pay is the major obstacle to 
     quality teaching.
       I have attached an executive summary of Dr. Levine's 
     report, ``Educating School Leaders.''
       Finally, I hope you will put a spotlight on the greatest 
     threat to broader public support and funding for higher 
     education: the growing political one-sidedness which has 
     infected most campuses, and an absence of true diversity of 
     opinion.
       To describe this phenomenon, allow me to borrow some words 
     from the past, which may sound familiar to your chairman, 
     Charles Miller, who was once Chairman of the Board of Regents 
     of the University of Texas: ``systematic, persistent and 
     continuous attempts by a politically dominant group to impose 
     its social and educational views on the university.'' This 
     was what the American Association of University Professors 
     (AAUP) called it in its censure of Texas Governor Pappy 
     O'Daniel's Board of Regents when the Board fired University 
     of Texas President Homer Rainey in the 1940s. This is 
     reported in Willie Morris' book, ``North Toward Home.'' Then 
     the AAUP was talking about one-sidedness imposed by the 
     right, instead of by the left--but political one-sidedness is 
     political one-sidedness, no matter from what direction it 
     comes.
       There is more to this charge of one-sidedness than the 
     academic community would like to admit. How many conservative 
     speakers are invited to deliver commencement addresses? How 
     many colleges require courses in U.S. history? How many even 
     teach Western Civilization? How many bright, young faculty 
     members are encouraged to earn dissertations in the failures 
     of bilingual education or on the virtues of vouchers or 
     charter schools?
       I am not surprised that most faculties express liberal 
     views, vote Democratic and that most faculty members resist 
     authority. That is the nature of most university communities. 
     But I am disappointed when true diversity of thought is 
     discouraged in the name of a preferred brand of diversity. 
     This one-sidedness is not good for students. It is not good 
     for the pursuit of truth. And it undermines broad public 
     support for higher education. The solution to this political 
     rigidity lies not in Washington, D.C., but in the hands of 
     trustees, deans and faculty members themselves.
       Last year Senator Kay Bailey Hutchison of Texas invited 
     former Brazilian President Fernando Henrique Cardoso to join 
     a small group of U.S. senators in the majority leader's 
     office for a discussion. Dr. Cardoso was completing a 
     residency at the Library of Congress.
       ``What memory of the United States will you take back to 
     your country?'' Senator Hutchison asked Dr. Cardoso.
       ``The American university,'' he replied immediately. ``The 
     uniqueness, strength and autonomy of the American university. 
     There is nothing like it in the world.''
       I salute Secretary Spellings and this Commission for 
     undertaking to preserve and improve higher education, 
     America's secret weapon for its future success.
       In coming to your conclusions, I hope that you will urge 
     the President to adopt the Augustine Report and to designate 
     a lead advisor for higher education, that you will jump on 
     the bandwagon to deregulate higher education and preserve its 
     autonomy, that you will urge Congress to overhaul Medicaid 
     and Federal court consent decrees so States can properly fund 
     higher education, and that you will urge trustees to revamp 
     colleges of education and ensure a campus environment that 
     honors true diversity of opinion.

  The PRESIDING OFFICER. The Senator from New Jersey.
  Mr. MENENDEZ. Mr. President, I also rise in strong support of the 
higher education reauthorization bill before the Senate today.
  I first thank my colleague, the chairman of the Health, Education, 
Labor and Pensions Committee, a true champion for education in our 
country. Senator Kennedy's vision for higher education will help make 
sure college is more accessible and affordable to all our young people 
regardless of their race, their class, or their income. It is because 
of the vision of Senator Kennedy, of Senator Pell before, and others 
that the doors to college have been opened to millions of Americans who 
otherwise would not have had access to that American dream.
  I appreciate Senator Enzi's leadership as well in bringing and moving

[[Page 20004]]

this bill on the floor. I salute him for all of his work, both on the 
bill we had last week and now the bill we have today. It is a 
tremendous testament of what we can do when we join in a common cause.
  As someone whose dreams of college could not have been realized 
without the power of the Pell grant and without other Federal aid, I am 
proud to be able to support legislation that will open the doors for 
the next generation of students in this country. Without the critical 
assistance I received, I would never have been able to be the first in 
my family to graduate from college, then later from law school, and I 
certainly wouldn't be speaking here on the floor of the Senate.
  The bill before us takes great steps toward improving and leveling 
the playing field for all students so that more students are able to 
access and afford a higher education. Today, all students do not have 
an equal chance to attend college. As an example, Latinos and African 
Americans are less likely to be able to afford college and, therefore, 
more likely to qualify for Federal financial aid. Latinos and African 
Americans are 40 to 60 percent less likely to earn a bachelor's degree 
in their lifetime than other students. By also expanding Federal aid 
opportunities for minorities, the bill will help improve those numbers 
and close the gap in higher education.
  My own story of growing up poor yet having the opportunity to fulfill 
my dream of attending college because of Federal aid is still true as a 
challenge for so many of our young people today, and it will continue 
to be for the young people of tomorrow.
  The changes in this bill come at a critical time. It is projected 
that by the year 2015, 8 short years from now, college enrollment of 
African-American students will increase by 23 percent, and for Latinos 
that number will increase by a whopping 73 percent. Moreover, 75 
percent of undergraduate students are nontraditional students, meaning 
they either are attending part time and working full time, non-high 
school graduates, or have dependents, among other characteristics. The 
student populations of our Nation's colleges will increasingly reflect 
the changing landscape of our country. So this bill is going to help 
all of our students.
  More and more of our students will not be the sons and daughters of 
previous college graduates. The student of tomorrow will be a mother 
who juggles a full-time job and attends community college part time at 
night so she can gain skills that will lead to a better job and provide 
her children economic security.
  The student of tomorrow will be a naturalized U.S. citizen who, with 
the help of Federal aid, can fulfill his dream of becoming an engineer 
who can give back to this country by helping build new infrastructure.
  The student of tomorrow will be a foster child who is able to attend 
college with Federal aid and fulfill her dream of becoming a nurse so 
she can not only live a stable life but give back to a system that 
saved hers.
  The student of tomorrow will be a bright high school student who 
works part time through college and despite his family's low income can 
attend the college of his choice because of Pell and Perkins.
  These are the students who will help define the students of our 
Nation--the first-generation students breaking through new barriers, 
the parents working to improve life for their children, the naturalized 
citizen building a better life in this country. They will each be 
charting their own path, able to realize their dreams because of the 
opportunity only a college education can provide.
  How well educated they are will not just determine how successful 
they are in the workforce but how successful our Nation is in the 
global economy. As a nation, I am convinced that the single greatest 
asset we will have in this global economy is our collective intellect. 
To be a leader globally, we will have to be at the apex of the curve of 
intellect. That means the most highly educated generation this Nation 
has ever known. To get there, our education pipeline must be accessible 
and affordable to a great cross-section of young people.
  However, rising costs, combined with far too stagnant growth in 
family income and declining Federal aid, have effectively priced out 
many students. Even with student loans and work study, today's students 
have thousands in unmet financial need they often cannot afford to pay. 
As a nation, we simply cannot afford to have our students priced out of 
a college education. Our Nation's future depends on it.
  The legislation before us will make key changes to help ensure the 
doors to college remain open to all, not just those who can afford it 
out of pocket. This bill realizes that improving access to college does 
not just mean increasing funding. Improving access to college means 
curbing rising tuition costs so that young people will be able to 
better afford a higher education. This bill will hold colleges 
accountable for rising tuition costs by making tuition data public and 
available so students and their families can compare costs. By 
publicizing costs to prospective families, colleges will need to 
justify tuition increases that far exceed those of comparable 
institutions.
  Improving access to college means reforming the student loan system 
so students get loans that are fair, not loans that wash them away in 
debt. Outrageous loan debt is forcing borrowers to delay either buying 
a home in the future or taking the dream job of their choice after 
college simply because it will not pay enough. This bill reverses this 
troubling trend by not only expanding Federal aid but ensuring students 
are getting the best possible deal when they take out a loan.
  Improving access to college also means starting at the first step--
filling out the forms. As someone who had to fill out the FAFSA form by 
myself, it was pretty daunting. For any student facing this process on 
their own or for families with income, language, or other barriers, the 
financial aid process itself can be overwhelming. By reducing the FAFSA 
from 10 pages to 2 pages, we make it easier for students to accomplish 
the very first step necessary to get financial aid.
  By improving access to college, it also means helping students get on 
the right path early by strengthening and expanding programs such as 
GEAR UP and TRIO, by promoting quality teacher preparation programs, 
and helping high-needs public schools recruit and retain high-quality 
teachers. This bill takes low-income and first-generation students 
closer to their dreams of college.
  We also need to expand access beyond the undergraduate realm. I am 
particularly pleased that this bill expands funding for minority-
serving institutions and specifically supports the creation of graduate 
programs at Hispanic-serving institutions, a proposal I have supported 
for a long time. Latinos currently make up less than 6 percent of 
graduate students, and by expanding opportunities at Hispanic-serving 
institutions which enroll more than 50 percent of all Latino students 
in this country, this expansion is an important step to ensuring the 
Nation's graduate and doctorate students reflect the diversity of our 
Nation.
  Ensuring our students are prepared to be the next generation of 
innovators, business owners, and leaders requires a serious commitment 
to making college affordable and accessible. This means making 
education work for all students. That is why we must take the steps to 
increase critical grant aid and strengthen key programs to help open 
the doors to college for all our young people. We must ensure our young 
people are getting the best possible deal when they apply to college 
and that every student who is willing to work hard has the opportunity 
to graduate from college.
  I believe that in this Nation in which this challenge for us globally 
is so significant, in which an engineer's report is created in India 
and transmitted back to the United States for a fraction of the cost, 
in which a radiologist's report is done in Pakistan and sent to your 
local hospital, read by your local doctor, if you have a problem with a 
credit card, as I recently did, you may end up in a call center in

[[Page 20005]]

South Africa, in the pursuit of human capital for the creation of a 
product for the delivery of a service; we are globally challenged. That 
is why this ability to have a generation that has the greatest 
educational achievement is so important to the Nation's competitive 
future.
  I want to make sure that the opportunity I had as someone who had 
challenges is an opportunity that can be met by every student who is 
willing to work hard, has the ability, and gives something back to 
their country. This bill is going to make that happen. I think this 
bill takes us significantly in the right direction. I hope it will have 
incredibly robust support when its final passage comes up for a vote.
  Mrs. HUTCHISON. Mr. President, I rise today to speak about the Higher 
Education Act.
  As the reauthorization process continues, I want to highlight the 
importance of Hispanic serving institutions, and the role they play in 
educating our young people.
  Hispanics should have equal opportunities to receive a first-class 
education, acquire the great jobs available in America, and pursue 
careers in any field they desire whether it's in medicine, law, 
business, education, or any other area.
  According to the Census Bureau, Hispanics account for 1 out of every 
2 people who are added to the Nation's population, and the U.S. 
Department of Labor estimates that 1 out of every 3 new entrants into 
the job market is Hispanic.
  The percentage of Hispanic students attending college has also 
increased significantly over the past few years. Because the pace of 
bachelor's degrees earned by Hispanics is accelerating rapidly, we must 
keep pace by increasing the capacity of our institutions of higher 
education to serve these students.
  Our Hispanic serving institutions are able to do this.
  HSIs continue to grow in stature and importance. They are home to 
more than half of all Hispanic college students, and are often the only 
viable opportunity for individuals of modest economic backgrounds to 
attend college.
  I applaud HSIs for their vast contributions in providing quality 
educational opportunities to all Hispanic and non-Hispanic students who 
attend their institutions, and I remain committed to opening the doors 
of higher education to all Americans and keeping our country 
competitive in the global marketplace.
  I have been proud to serve as cochair of the HSI Coalition with my 
colleague Senator Bingaman of New Mexico. The success we have had over 
the past 11 years has us headed in the right direction.
  From 1995-2006, we have helped increase Federal funding for HSIs from 
$12 million to $95.8 million.
  The Third Higher Education Extension Act of 2006 removed two barriers 
harmful to Hispanics and HSIs. It eliminated the 2-year wait-out period 
between HSI grant funding cycles, as well as the requirement that 50 
percent of the Hispanic student population must be low-income for the 
school to qualify for HSI eligibility. This allows HSIs to gain funding 
without costly gathering and reporting of individual Hispanic-student 
income documentation, which was often impossible for universities to 
obtain.
  Despite the positive increases in college student matriculation, 
overall, too few Hispanic-Americans graduate from high school or 
college. If we fail to properly educate one-half of America's future 
workforce, there will be disastrous economic and social consequences 
for the entire nation.
  As we debate the reauthorization of the Higher Education Act, I want 
to make sure that our federally-designated HSIs are not left behind.
  I have ensured that the language of the Next Generation Hispanic 
Serving Institutions Act is included in the Higher Education Act. I am 
an original cosponsor of this legislation, which I introduced with 
Senator Bingaman on February 13, 2007.
  This bill provides fellowships and support services for graduates, as 
well as facility and faculty improvements at HSIs. It provides new 
technology for distance education and collaborative arrangements with 
other institutions.
  In addition, the legislation increases the authorization of the 
current HSI program to $175 million and authorizes $125 million for the 
new HSIs graduate program for fiscal year 2008.
  I strongly urge my colleagues in the Senate to support these 
provisions.
  Mr. CARDIN. Mr. President, I rise today in strong support of the 
higher education amendments before the Senate. This bill works toward 
one of the most important responsibilities elected representatives 
shoulder: opening the doors of educational opportunity for each 
American child and every American family.
  Last week, the Senate took a critical step toward making college more 
affordable by passing the Higher Education Access Act, legislation that 
increases Pell grants, caps student loan repayments, and provides loan 
forgiveness for those who enter and stick with careers in public 
service.
  But we must actually control college costs if we hope to make 
permanent progress on college affordability. The legislation now before 
the Senate would not only allow the Secretary of Education to highlight 
those colleges and universities whose tuition increases are out of line 
with their peers, it would allow the Secretary to study what factors 
are driving soaring higher education costs in this country and identify 
what measures could be utilized to bring them under control.
  Even with this effort and the important measures passed last week, 
most students and their families in Maryland and around the Nation will 
still have to borrow money to make their college dream a reality.
  Today, that means completing lengthy and confusing Federal and 
school-based student aid applications. Once those applications are 
submitted, families must decipher various colleges' price estimates and 
various banks' descriptions of loan terms and conditions. Financial 
award letters often contain inconsistent definitions and formats to 
describe the cost of attendance, the financial aid offered, and the 
costs associated with various types of loans. Too many banks provide 
inadequate information about their rates and terms. As a result, 
families are unable to shop around for the financial aid package or 
best loan rates and are ill-prepared for post-graduation monthly 
payments. Jim Guest, president of the Consumers Union, has said that 
``[f]inancing a house or car can be confusing, but it's nothing 
compared with trying to pay for a college education.''
  In the face of such confusion, many students and their families turn 
to financial aid officers to guide their choices. But throughout this 
year, thanks to the New York Attorney General and my distinguished 
colleagues on the Senate Health, Education, Labor, and Pensions 
Committee, we have learned that some financial aid officers, including, 
unfortunately, some from Maryland, were not giving families honest 
advice. Some financial aid offices were receiving expensive gifts, 
travel and other kickbacks from lenders and in return recommended those 
lenders to students, even if the product was not in the students' best 
interest.
  This important legislation takes critical steps to reform the entire 
student loan system so that students and their families will receive 
timely, accessible, and reliable information and can make wise college 
financing decisions.
  First and foremost, the legislation would simplify the financial aid 
process for all students and their families.
  The bill reforms the Federal financial aid application. The Free 
Application for Federal Student Aid, FAFSA, is currently 10 long pages 
full of complex questions. Its length and complexity create an 
unnecessary obstacle for low- and middle-income students seeking the 
aid they need to attend college. The higher education amendments 
simplify the FAFSA by creating a new two-page EZ-FAFSA for low-income 
students, and phasing out the current seven-page FAFSA for all 
applicants within 5 years.
  Further, the bill creates a pilot program that allows students to 
receive an aid determination or estimate in their junior year of high 
school. Rather than making complicated decisions in

[[Page 20006]]

a frenzy of paper and options, the bill facilitates student planning, 
giving families time to investigate their financing options.
  This critical bill makes sure that those options are easier to 
understand. The bill requires the Secretary of Education work with 
colleges and universities to develop several model price calculators 
that would give students an institution's actual net price. With these 
bottom-line prices in hand--in clear and consistent terms--families 
will be better equipped to make the right college and financing 
choices.
  Plus, the bill requires lenders clearly disclose the terms of their 
loans and again asks the Secretary of Education to develop a consumer-
friendly format so that families receive information in a consistent 
and accessible way.
  But critically important, the bill protects students by ensuring 
colleges recommend lenders based on students--not banks' or financial 
aid officers'--best interest.
  The bill requires that colleges adopt and enforce a code of conduct 
that prohibits the college or any of its employees from accepting any 
significant gifts, trips, services, or other benefits from lenders, 
period. If a college chooses to select a ``preferred lender,'' it must 
provide the Secretary of Education and the public a clear report 
explaining why the preferred products are in the best interest of 
students or their parents.
  These provisions take critical steps towards cleaning up the student 
loan industry by removing the conflicts of interest that compromised 
the advice and integrity of too many financial aid offices and 
officers.
  Beyond the student loans, the higher education amendments make more 
grant aid available to students in Maryland and around the nation. This 
bill expands eligibility criteria for Academic Competitiveness Grants, 
ACG, and National Science Mathematics Access to Retain Talent, SMART, 
grants; expands critical opportunities and services provided for low-
income, first generation, and homeless college students under Federal 
TRIO Programs; increases grants to States to provide its young 
scientists and mathematicians with scholarships; and increases 
colleges' ability to reach out and prepare younger students for college 
through partnership programs. The bill makes it easier for colleges to 
use grant money to provide financial counseling and for students to 
engage in public service opportunities as part of their work-study 
obligations.
  Grant programs encourage colleges to build partnerships with the 
business community to address the Nation's workforce needs and to build 
programs that teach all students, and especially minority students, 
foreign languages and encourage them to enter international service 
fields. The bill creates a new grant program for predominantly Black 
institutions to enhance their capacity to service more low- and middle-
income Black American students; and a new grant for colleges to develop 
and improve their campus safety and emergency response systems in the 
wake of the terrible tragedy at Virginia Tech.
  What do these changes mean for Maryland students? Well, instead of 
filling out a seven-page monstrosity, students will have access to a 
simpler two-page form, and eventually an on-line smart form that 
tailors later questions as a student answers earlier ones and may even 
be able to populate information from forms submitted to the IRS and 
other Government agencies.
  Students will know their financial needs by their junior year of high 
school, enabling their family to examine straight-forward and honest 
documents outlining financing options. Families will be able to rely on 
financial aid officers for honest advice and will have greater access 
to financial aid counseling. Expanded grant eligibility requirements 
will give Maryland students increased access to grants and a better 
ability to pursue their dreams. St. John's students in Annapolis, for 
instance, will now be able to apply for SMART grants whereas this 
unique institution's absence of formal majors was a barrier to student 
eligibility in the past. Students who choose to go to school year round 
will be eligible for a second Pell grant. The books and supplies 
allowance for Federal work-study students will go from $450 to $600.
  Perhaps most important, this bill takes steps toward addressing one 
of the most critical education problems we have in this country: a 
growing teacher shortage. As you know, Mr. President, teachers are our 
most valuable resource when it comes to educating our Nation's 
children. According to research, teacher quality is the schooling 
factor with the greatest effect on student achievement. Good teachers 
can make up to a full year's difference in learning growth for students 
and dwarf the impact of any other educational investment, even smaller 
class sizes.
  But between the retirement of hundreds of thousands of baby boomers, 
efforts to reduce class sizes, and the No Child Left Behind law's 
raised standards for new teachers, school systems across the Nation 
can't find enough qualified recruits to fill their class rooms.
  Maryland is no different. In 2006, the Maryland Higher Education 
Commission found that the State ``is not producing or attracting enough 
teachers to fulfill the staffing requirements of the State's school 
systems, especially in high need certification fields.'' High turnover 
only makes the problem worse.
  It is widely accepted that it takes 5 years to master the complex art 
of teaching. But one-third of new teachers leave the profession within 
3 years, half within 5 years, and attrition is greater in schools in 
low-income, urban districts. Of the estimated 6 million people in the 
U.S. with teaching backgrounds or credentials, only 3 million are 
actually teaching. Not only does the turnover leave our classrooms 
without teachers, but recruiting and training new teachers costs the 
country $7 billion a year.
  Because research shows even modest monetary incentives lower teacher 
attrition, especially in high-risk school districts, I introduced the 
Master Teacher Act of 2007 to reward ``master teachers'' with a 25-
percent Federal tax exemption on their salary for 4 years if they agree 
to teach in a school that is not meeting No Child Left Behind's annual 
achievement goals. That legislation is now before the Senate Finance 
Committee.
  But more must be done to attract our best and brightest to teaching 
and then keep them there. Most professions, require new entrants go 
through extensive formal or informal apprenticeships before taking on 
the profession's full responsibilities. Not many graduate law school 
and the next day walk into a courtroom and try a death penalty case or 
graduate medical school and immediately walk into an operating room to 
perform open-heart surgery. Those professions require decades of 
training post-graduation. Teaching is an equally complex profession, 
melding academic theory and practice, and carries enormous 
responsibility for children's personal and our Nation's collective 
economic future.
  But too many teachers are thrown into a classroom with their own 
students, many with complex social, emotional, and learning needs, 
without sufficient training or support. And too many leave the 
profession feeling frustrated, defeated, and disheartened. Studies have 
shown a connection between support in the first year and teachers' 
moving between schools and leaving the profession. A helpful mentor, as 
reported by teachers, significantly reduces the chances of quitting in 
the first year. Common planning time and collaboration with other 
teachers are strong predictors of teachers' decisions to stay in a 
school and the profession.
  The higher education amendments will improve teacher quality, 
training, and retention by promoting high-quality and effective teacher 
preparation programs for new and prospective teachers, and help high-
need schools by focusing on recruiting and retaining high-quality 
teachers in high-need schools.
  The bill creates competitive grants for innovative teacher 
preparation programs that address the need for stronger teaching 
methods and better teacher support. The bill provides a competitive 
grant for college level preparation

[[Page 20007]]

programs that include evidence-based teaching methods, mentoring 
programs for the teacher's first 2 years in service--called induction 
programs--and new accountability measures to allow programs to improve 
the training offered.
  The bill also provides grants to teaching residency programs, 
programs that provide participants a 1-year stipend to engage in a 
guided teaching apprenticeship with a master teacher that integrates 
theory and practice and includes master's degree coursework. These 
residency programs must place participants in high-needs schools and 
work with local school districts to develop an induction program to 
provide continued support to residents once the program ends. These 
programs must also contain accountability measures methods that allow 
for program evaluation and improvement.
  I want to express my gratitude to Senators Kennedy and Enzi and the 
rest of my colleagues on the Senate Health, Education, Labor, and 
Pensions Committee for all their hard work and leadership in bringing 
such a comprehensive and innovative bill to the floor.
  Mr. President, I first ran for elected office in my home State of 
Maryland at the age of 22. I sought elected office because I believed 
that government can make a difference in people's lives. This bill, 
reauthorizing the Higher Education Act of 1965, does just that, and I 
am proud to offer my support.
  Mr. REED. Mr. President, due to the delay of my flight from Rhode 
Island, I was unavoidably absent for vote No. 273, the Brown amendment 
to create a new Federal Supplemental Loan program.
  Had I been present, I would have supported the Brown amendment No. 
2376. We know that more and more students are taking out private loans 
with high interest rates. Senator Brown's amendment seeks to provide an 
alternative for those students who have exhausted their grant and 
Stafford loan aid and continue to need assistance in meeting their 
college cost of attendance. I have heard concern that such a program 
could provide a disincentive to States to provide additional grant aid, 
but I believe we must address the fact that too many moderate- and low-
income students take out high interest private loans, which creates an 
unmanageable loan burden for these students and their families. The 
Brown amendment is an attempt to rectify this situation and although 
not perfect, it is worthy of inclusion in the committee's deliberation.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DURBIN. Mr. President, what is the pending order of business?
  The PRESIDING OFFICER. The pending amendment is the Kennedy second-
degree amendment to the Coburn amendment.


                           Amendment No. 2377

  Mr. DURBIN. Mr. President, I ask unanimous consent to return to the 
amendment I filed earlier.
  The PRESIDING OFFICER. Without objection, it is so ordered. The 
amendment is now pending.
  Mr. DURBIN. I ask the Chair if there is a pending second-degree 
amendment by the Senator from Iowa.
  The PRESIDING OFFICER. There is.
  Mr. DURBIN. I would say to the Chair, for those Members following, 
there has been agreement reached, and there will be no objection to the 
adoption of the second-degree amendment to my amendment and then the 
adoption of my amendment, both by voice vote.
  So at this point, I urge the adoption of the second-degree amendment 
offered by the Senator from Iowa.
  The PRESIDING OFFICER. Without objection, the amendment is agreed to.
  The amendment (No. 2380) was agreed to.
  Mr. DURBIN. Now, Mr. President, I urge adoption of the Durbin 
amendment, as amended by the second-degree amendment of the Senator 
from Iowa.
  The PRESIDING OFFICER. Without objection, the amendment, as amended, 
is agreed to.
  The amendment (No. 2377), as amended, was agreed to.


                           Amendment No. 2381

  Mr. DURBIN. Mr. President, I ask to return to the pending business 
before I make my unanimous consent request.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DURBIN. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. REID. Mr. President, I ask unanimous consent that when the Senate 
resumes consideration of S. 1642 in the morning, July 24, no amendments 
other than those in this agreement be in order; that there be 20 
minutes of debate time remaining, divided as follows: 10 minutes each 
for Senators Kennedy and Enzi; upon the use of that time, the Senate 
proceed to vote in relation to the Kennedy second-degree amendment, No. 
2387; that upon disposition of the Kennedy amendment, if the Kennedy 
amendment is agreed to, then it be in order for Senator Coburn to offer 
a further second-degree amendment on the same subject; that there be 2 
minutes of debate prior to a vote in relation to the Coburn second-
degree amendment, if offered, with the time equally divided and 
controlled in the usual form; that upon disposition of the Coburn 
second-degree amendment, there be 2 minutes for debate, equally 
divided, prior to a vote in relation to the Coburn amendment No. 2369, 
as amended; that upon disposition of the Coburn amendment No. 2369, as 
amended, if amended, the committee substitute amendment, as amended, be 
agreed to, the motion to reconsider be laid upon the table; the bill be 
read a third time, and the Senate proceed to vote on passage of the 
bill without further intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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